April 08, 2026 16:05 ET | Source: Avista Corporation
SPOKANE Wash., April 08, 2026 (GLOBE NEWSWIRE) -- Avista Corp. (NYSE: AVA) will hold its quarterly conference call and webcast to discuss first quarter 2026 results on Tuesday, May 5, 2026, at 10:30 a.m. Eastern Daylight Time. A news release with first quarter 2026 earnings information will be issued at 7:05 a.m. Eastern Daylight Time on May 5, 2026.
This call can be accessed on Avista’s website at investor.avistacorp.com. You must pre-register for the call via the Presentations and Events link at Avista’s website (investor.avistacorp.com/events-and-presentations) to access the call-in details for the webcast. A replay of the webcast will be available for one year on the Avista Corp. website at investor.avistacorp.com.
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is the operating division that provides electric service to 429,000 customers and natural gas to 386,000 customers. Its service territory covers 34,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.5 million. Alaska Energy and Resources Company is an Avista subsidiary that provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska, through its subsidiary Alaska Electric Light and Power Company. Avista stock is traded under the ticker symbol "AVA." For more information about Avista, please visit avistacorp.com.
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
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SPOKANE, Wash., May 05, 2026 (GLOBE NEWSWIRE) -- Avista Corp. (NYSE: AVA) today reported net income based on GAAP of $92 million, or $1.11 per diluted share, for the first quarter of 2026, compared to $79 million, or $0.98 per diluted share, in 2025. Non-GAAP utility earnings1 were $91 million, or $1.10 per diluted share, compared to $82 million, or $1.01 per diluted share in 2025. Avista Corp. is confirming its 2026 non-GAAP utility earnings guidance2 with a range of $2.52 to $2.72 per diluted share.
CEO Perspective
“Strong performance in the first quarter demonstrates our focus on fundamentals: safety, reliability, and sound operational and financial execution. Our continued investments ensure we meet the needs of the communities we serve and also build long-term value for our customers, communities and shareholders. We are on track to meet our 2026 earnings guidance and are confident in the opportunities ahead,” said Heather Rosentrater, President and CEO of Avista.
Analysis of First Quarter 2026 GAAP Earnings
Net income for the first quarter of 2026 increased compared to the first quarter of 2025 primarily due to increased utility margin resulting from the effects of our general rate cases and net investment gains at our other businesses compared to net investment losses in the first quarter of 2025.
Analysis of 2026 Non-GAAP Utility Earnings
The following table presents the changes in non-GAAP utility earnings and non-GAAP utility earnings per diluted share for the first quarter of 2026, as compared to the first quarter of 2025. It also outlines the various after-tax factors that contributed to these changes (dollars in millions, except per-share data):
Net
Income (a) Earnings
per Share 2025 utility earnings $82 $1.01 Changes in net income and diluted earnings per share: Avista Utilities Electric utility margin (b) (2) (0.02)Natural gas utility margin (c) 4 0.04 Other operating expenses (d) — — Depreciation and amortization (e) 3 0.04 Interest expense (1) (0.01)Other (f) 3 0.04 Income tax at effective rate (g) 2 0.02 Dilution on earnings n/a (0.03)Total Avista Utilities 9 0.08 AEL&P — 0.01 2026 utility earnings $91 $1.10
(a) The tax impact of each line item was calculated using Avista Corp.'s federal statutory tax rate of 21 percent.
(b) Electric utility margin decreased as a result of the removal of revenues related to the recovery of Colstrip costs, partially offset by other effects of our general rates cases. The Energy Recovery Mechanism (ERM) resulted in a $1 million pre-tax expense for the first quarter of 2026, compared to a $7 million pre-tax expense in the same period in 2025.
(c) Natural gas utility margin increased primarily due to the effects of our general rate cases.
(d) Other operating expenses remained unchanged, with decreased expenses from Colstrip offset by expected increases in other expenses.
(e) Depreciation and amortization decreased primarily due to our exit from Colstrip in 2026. This decrease was partially offset by increases from additions to plant.
(f) Other increases to earnings include increased interest income compared to the prior year and decreased taxes other than income taxes.
(g) Our effective tax rate in the first quarter of 2026 was 12% compared to 14% in the same period of 2025.
Analysis of Non-Regulated Other Business Income
Income at our non-regulated other businesses was $1 million in the first quarter of 2026, compared to losses of $3 million in the first quarter of 2025. The fluctuation in results is primarily related to net investment gains in the first quarter of 2026, compared to net investment losses in the first quarter of 2025.
Liquidity and Capital Resources
Liquidity
As of Mar. 31, 2026, we had $110 million of available liquidity under the Avista Corp. committed line of credit and $46 million of available liquidity under our letter of credit facility.
We expect to issue up to $90 million of common stock in 2026, including $14 million issued in the first quarter of 2026.
We also expect to issue $230 million of long-term debt during 2026.
Capital Expenditures
In the first quarter of 2026, Avista Utilities' capital expenditures were $147 million.
For Avista Utilities, we expect base capital expenditures as follows through 2030 (dollars in millions):
2026 2027 2028 2029 2030 Expected base annual capital expenditures $615 $635 $800 $680 $710
These estimates include expenditures for the projects selected through our 2025 request for proposal. These estimates do not include incremental transmission projects, like regional grid expansion, or additional generation. Potential additional capital expenditures associated with integrating a new large load customer are excluded from base capital above.
2026 Utility Earnings Guidance and Outlook
Avista Corp. is confirming its 2026 non-GAAP utility earnings guidance with a range of $2.52 to $2.72 per diluted share.
This non-GAAP utility earnings guidance is based on the following assumptions:
Normal weatherA negative impact from the ERM of ($0.10) cents per diluted share within the 90% customer, 10% company sharing bandAn effective tax rate of 12 percentCapital expenditures of $615 million Over the long term, we expect non-GAAP utility earnings to grow 4 to 6 percent from the midpoint of our 2025 earnings guidance.
Our guidance does not include the effect of unusual or non-recurring items until the effects are probable. Various factors could cause actual results to differ materially from our expectations. Please refer to our 10-K for 2025, our 10-Q for the first quarter of 2026, and the cautionary statements below for a full discussion of these factors.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, including utility earnings, utility earnings per diluted share and utility margin. We present these non-GAAP measures in order to facilitate meaningful evaluation of our operating performance across periods, and we utilize these non-GAAP measures to assess current and forecast performance, as well as for communications with shareholders, analysts and investors. Non-GAAP measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP.
Non-GAAP utility earnings and utility earnings per diluted share exclude non-regulated other business activity, primarily consisting of realized and unrealized investment gains and losses. The presentation of utility earnings is intended to enhance the understanding of the Company's utility-specific operating performance.
The following table reconciles GAAP net income to non-GAAP utility earnings, and GAAP earnings per diluted share to non-GAAP utility earnings per diluted share for the three months ended Mar. 31 (dollars in millions, except per share amounts):
2026 2025 GAAP net income as reported $92 $79 Non-GAAP adjustments: Non-regulated other business (income) loss (1) 3 Non-GAAP utility earnings $91 $82 GAAP earnings per diluted share as reported $1.11 $0.98 Non-GAAP adjustments: Non-regulated other business (income) loss per diluted share (0.01) 0.03 Non-GAAP utility earnings per diluted share $1.10 $1.01
The table below includes electric and natural gas utility margin. The most directly comparable measure calculated and presented in accordance with GAAP is utility operating revenues.
The presentation of electric and natural gas utility margin is intended to enhance the understanding of operating performance, as it provides useful information to investors in their analysis of how changes in loads (due to weather, economic or other conditions), rates, supply costs and other factors impact our results of operations.
The following table reconciles Avista Utilities' operating revenues to utility margin (after-tax) for the three months ended Mar. 31 (dollars in millions):
Electric Natural Gas Intracompany Total 2026 2025 2026 2025 2026 2025 2026 2025 Operating revenues $346 $363 $210 $244 $(1) $(4) $555 $603 Resource costs 112 126 95 134 (1) (4) 206 256 Income taxes (a) 49 50 24 23 — — 73 73 Utility margin, net of tax $185 $187 $91 $87 $— $— $276 $274 (a) Income taxes for 2026 and 2025 were calculated using Avista Corp.'s federal statutory tax rate of 21%.
NOTE: We will host a conference call with financial analysts and investors on May 5, 2026 at 10:30 a.m. ET to discuss this news release. This call can be accessed on Avista’s website at investor.avistacorp.com. You must register for the call via the link at Avista’s website (investor.avistacorp.com) to access the call-in details for the webcast. A replay of the webcast will be available for one year on the Avista Corp. web site at investor.avistacorp.com.
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to approximately 429,000 customers and natural gas to 386,000 customers. Our service territory covers 34,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.5 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska. Our stock is traded under the ticker symbol “AVA”. For more information about Avista, please visit avistacorp.com.
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
This news release contains forward-looking statements, including statements regarding our current expectations for future financial performance and cash flows, capital expenditures, financing plans, our current plans or objectives for future operations and other factors, which may affect the company in the future. Such statements are subject to a variety of risks, uncertainties and other factors, most of which are beyond our control and many of which could have significant impact on our operations, results of operations, financial condition or cash flows and could cause actual results to differ materially from those anticipated in such statements.
The following are among the important factors that could cause actual results to differ materially from the forward-looking statements:
Utility Regulatory Risk
state and federal regulatory decisions or related judicial decisions that affect our ability to recover costs and earn a reasonable return, including, but not limited to, disallowance or delay in the recovery of capital investments, operating costs, commodity costs, the ordering of refunds to customers and discretion over allowed return on investment; the loss of regulatory accounting treatment, which could require the write-off of regulatory assets and the loss of regulatory deferral and recovery mechanisms;
Operational Risk
weather conditions, which affect both energy demand and electric generating capability, including the impact of precipitation and temperature on hydroelectric resources, the impact of wind patterns on wind-generated power, weather-sensitive customer demand, and similar impacts on supply and demand in the wholesale energy markets; wildfires ignited, or allegedly ignited, by our equipment or facilities could cause significant loss of life and property or result in liability for resulting fire suppression costs and/or damages, thereby causing serious operational, reputational and financial harm; severe weather or natural disasters, including, but not limited to, avalanches, wind storms, wildfires, earthquakes, floods, extreme temperature events, snow and ice storms that could disrupt energy generation, transmission and distribution, as well as the availability and costs of fuel, materials, equipment, supplies and support services; political unrest and/or conflicts between foreign nation-states, which could disrupt the global, national and local economy, result in increases in operating and capital costs, impact energy commodity prices or our ability to access energy resources, create disruption in supply chains, disrupt, weaken or create volatility in capital markets, and increase cyber and physical security risks. In addition, any of these factors could negatively impact our liquidity and limit our access to capital, among other implications; explosions, fires, accidents, mechanical breakdowns or other incidents that could impair assets and may disrupt operations of our generation facilities, transmission, and electric and natural gas distribution systems or other operations and may require us to purchase replacement power or incur costs to repair our facilities; interruptions in the delivery of natural gas by our suppliers, including physical problems with pipelines themselves, can disrupt our service of natural gas to our customers and/or impair our ability to operate gas-fired electric generating facilities; explosions, fires, accidents or other incidents arising from or allegedly arising from our operations that could cause injuries to the public or property damage; dam failure at a company-owned hydroelectric facility; blackouts or disruptions of interconnected transmission systems (the regional power grid); terrorist attacks, cyberattacks or other malicious acts that could disrupt or cause damage to our utility assets or to the national or regional economy in general, including effects of terrorism, cyberattacks, ransomware, or vandalism that damage or disrupt information technology systems; pandemics, which could disrupt our business, as well as the global, national and local economy, resulting in a decline in customer demand, deterioration in the creditworthiness of our customers, increases in operating and capital costs, workforce shortages, losses or disruptions in our workforce due to vaccine mandates, delays in capital projects, disruption in supply chains, and disruption, weakness and volatility in capital markets. In addition, any of these factors could negatively impact our liquidity and limit our access to capital, among other implications; work-force issues, including changes in collective bargaining unit agreements, strikes, work stoppages, the loss of key executives, availability of workers in a variety of skill areas, and our ability to recruit and retain employees; changes in the availability and price of purchased power, fuel and natural gas, as well as transmission capacity; increasing costs of insurance, more restrictive coverage terms and our ability to obtain insurance; delays or changes in construction costs, and/or our ability to obtain required permits and materials for present or prospective facilities; increasing health care costs and cost of health insurance provided to our employees and retirees; increasing operating costs, including effects of inflationary pressures; third party construction of buildings, billboard signs, towers or other structures within our rights of way, or placement of fuel containers within close proximity to our transformers or other equipment, including overbuilding atop natural gas distribution lines; the loss of key suppliers for materials or services or other disruptions to the supply chain; adverse impacts to our Alaska electric utility (AEL&P) that could result from an extended outage of its hydroelectric generating resources or their inability to deliver energy, due to their lack of interconnectivity to other electrical grids and the availability or cost of replacement power (diesel); changing river or reservoir regulation or operations at hydroelectric facilities not owned by us, which could impact our hydroelectric facilities downstream;
Climate Change Risk
increasing frequency and intensity of severe weather or natural disasters resulting from climate change that could disrupt energy generation, transmission and distribution, as well as the availability and costs of fuel, materials, equipment, supplies and support services; change in the use, availability or abundancy of water resources and/or rights needed for operation of our hydroelectric facilities, including impacts resulting from climate change; changes in the long-term climate and weather could materially affect, among other things, customer demand, the volume and timing of streamflows required for hydroelectric generation, costs of generation, transmission and distribution. Increased or new risks may arise from severe weather or natural disasters, including wildfires as well as their increased occurrence and intensity related to changes in climate;
Cybersecurity Risk
cyberattacks on the operating systems used in the operation of our electric generation, transmission and distribution facilities and our natural gas distribution facilities, and cyberattacks on such systems of other energy companies with which we are interconnected, which could damage or destroy facilities or systems or disrupt operations for extended periods of time and result in the incurrence of liabilities and costs; cyberattacks on the administrative systems used in the administration of our business, including customer billing and customer service, accounting, communications, compliance and other administrative functions, and cyberattacks on such systems of our vendors and other companies with which we do business, resulting in the disruption of business operations, the release of private information and the incurrence of liabilities and costs;
Technology Risk
changes in technologies, possibly making some of the current technology we utilize obsolete or introducing new cybersecurity risks and other new risks inherent in the use, by either us or our counterparties, of new technologies in the developmental stage including, without limitation, generative artificial intelligence; changes in the use, perception, or regulation of generative artificial intelligence technologies, which could limit our ability to utilize such technology, create risk of enhanced regulatory scrutiny, generate uncertainty around intellectual property ownership, licensing or use, or which could otherwise result in risk of damage to our business, reputation or financial results; changes in costs that impede our ability to implement new information technology systems or to operate and maintain current production technology; insufficient technology skills, which could lead to the inability to develop, modify or maintain our information systems;
Strategic Risk
growth or decline of our customer base due to new uses for our services or decline in existing services, including, but not limited to, the effect of the trend toward distributed generation at customer sites; the potential effects of negative publicity regarding our business practices, whether true or not, which could hurt our reputation and result in litigation or a decline in our common stock price; changes in our strategic business plans, which could be affected by any or all of the foregoing, including the entry into new businesses and/or the exit from existing businesses and the extent of our business development efforts where potential future business is uncertain; wholesale and retail competition including alternative energy sources, growth in customer-owned power resource technologies that displace utility-supplied energy or may be sold back to the utility, and alternative energy suppliers and delivery arrangements; non-regulated activities may increase earnings volatility and result in investment losses; the risk of municipalization or other forms of service territory reduction;
External Mandates Risk
changes in environmental laws, regulations, decisions and policies, including, but not limited to, regulatory responses to concerns regarding climate change, efforts to restore anadromous fish in areas currently blocked by dams, more stringent requirements related to air quality, water quality and waste management, present and potential environmental remediation costs and our compliance with these matters; the potential effects of initiatives, legislation or administrative rulemaking at the federal, state or local levels, including possible effects on our generating resources, prohibitions or restrictions on new or existing services, or restrictions on greenhouse gas emissions to mitigate concerns over climate changes, including future limitations on the usage and distribution of natural gas; restrictions or changes in government grant programs and/or availability of other public funding used for capital projects; political pressures or regulatory practices that could constrain or place additional cost burdens on our distribution systems through accelerated adoption of distributed generation or electric-powered transportation or on our energy supply sources, such as campaigns to halt fossil fuel-fired power generation and opposition to other thermal generation, wind turbines or hydroelectric facilities; failure to identify changes in legislation, taxation and regulatory issues that could be detrimental or beneficial to our overall business; policy and/or legislative changes in various regulated areas, including, but not limited to, environmental regulation, healthcare regulations and import/export regulations; increasing costs due to potential tariffs applied to energy commodities and/or equipment and materials;
Financial Risk
our ability to obtain financing through the issuance of debt and/or equity securities and access to our funds held with financial institutions, which could be affected by various factors including our credit ratings, interest rates, other capital market conditions and global economic conditions; changes in interest rates that affect borrowing costs, variable interest rate borrowing and the extent to which we recover interest costs through retail rates collected from customers; volatility in energy commodity markets that affects our ability to effectively hedge energy commodity risks, including cash flow impacts and requirements for collateral; volatility in the carbon emissions allowances market that could result in increased compliance costs; changes in actuarial assumptions, interest rates and the actual return on plan assets for our pension and other postretirement benefit plans, which could affect future funding obligations, pension and other postretirement benefit expense and the related liabilities; the outcome of legal proceedings and other contingencies; economic conditions in our service areas, including the economy's effects on customer demand for utility services; economic conditions nationally may affect the valuation of our unregulated portfolio companies; declining electricity demand related to customer energy efficiency, conservation measures and/or increased distributed generation and declining natural gas demand related to customer energy efficiency, conservation measures and/or increased electrification; industry and geographic concentrations which could increase our exposure to credit risks due to counterparties, suppliers and customers being similarly affected by changing conditions; deterioration in the creditworthiness of our customers; activist shareholders may result in additional costs and resources required in response to activist actions;
Energy Commodity Risk
volatility and illiquidity in wholesale energy markets, including exchanges, the availability of willing buyers and sellers, changes in wholesale energy prices that could affect operating income, cash requirements to purchase electricity and natural gas, value received for wholesale sales, collateral required of us by individual counterparties and/or exchanges in wholesale energy transactions and credit risk from such transactions, and the market value of derivative assets and liabilities; default or nonperformance on the part of parties from whom we purchase and/or sell capacity or energy; potential environmental regulations or lawsuits affecting our ability to utilize or resulting in the obsolescence of our power supply resources; explosions, fires, accidents, pipeline ruptures or other incidents that could limit energy supply to our facilities or our surrounding territory, which could result in a shortage of commodities in the market that could increase the cost of replacement commodities from other sources;
Compliance Risk
changes in laws, regulations, decisions and policies at the federal, state or local levels, which could impact both our electric and gas operations and costs of operations; the ability to comply with the terms of the licenses and permits for our hydroelectric or thermal generating facilities at cost-effective levels;
Resource Adequacy Risk
the ability to source and deliver adequate energy to meet customer demand in periods of high demand or unplanned events; and the potential effects of regional wholesale market strains, including during extreme weather events.
For a further discussion of these factors and other important factors, please refer to our Quarterly Report on Form 10-Q for the quarter ended Mar. 31, 2026. The forward-looking statements contained in this news release speak only as of the date hereof. We undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which such statement is made or to reflect the occurrence of unanticipated events. New risks, uncertainties and other factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on our business or the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
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Issued by: Avista Corporation
1 See reconciliations to GAAP measures and further information in the "Non-GAAP Financial Measures" section within this press release.
2 Avista Corp. is unable to provide GAAP earnings guidance or present a quantitative reconciliation of forward-looking non-GAAP utility earnings and utility growth guidance without unreasonable effort because certain reconciling items are not estimable. For instance, realized and unrealized investment gains and losses, which have historically made up the majority of our non-regulated other business earnings and can be significant to our overall results, are difficult to predict due to various factors outside of management's control. These items are uncertain, depend on various factors, and may have a material impact on our future GAAP results.
Avista (AVA - Free Report) came out with quarterly earnings of $1.1 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.85%. A quarter ago, it was expected that this utility would post earnings of $1.01 per share when it actually produced earnings of $0.88, delivering a surprise of -12.87%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Avista, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $570 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 11.56%. This compares to year-ago revenues of $617 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Avista shares have added about 5.2% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Avista?While Avista has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Avista was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.29 on $425.5 million in revenues for the coming quarter and $2.52 on $2.04 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Fortis (FTS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This electric and gas utility is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level.
Fortis' revenues are expected to be $2.44 billion, up 5.1% from the year-ago quarter.
May 06, 2026 16:46 ET | Source: Avista Corporation
SPOKANE, Wash., May 06, 2026 (GLOBE NEWSWIRE) -- Avista Corp.’s (NYSE: AVA) board of directors has declared a quarterly dividend of $0.4925 per share on the company’s common stock, yielding an annualized dividend of $1.97. The common stock dividend is payable June 12, 2026, to shareholders of record at the close of business on May 19, 2026.
The declaration of dividends is at the sole discretion of the board of directors. The board considers the level of dividends on a regular basis, taking into account numerous factors, including financial results, business strategies, and economic and competitive conditions.
About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is the operating division that provides electric service to 429,000 customers and natural gas to 386,000 customers. Its service territory covers 34,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.5 million. Alaska Energy and Resources Company is an Avista subsidiary that provides retail electric service in the city and borough of Juneau, Alaska, through its subsidiary Alaska Electric Light and Power Company. Avista stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.
This news release contains forward-looking statements regarding the company’s current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2025, and the Quarterly Report on Form 10-Q for the quarter ended Mar. 31, 2026.
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Contact:
Avista 24/7 Media Line (509) 495-4174
Media: Lena Funston (509) 495-8090 [email protected]
Investors: Stacey Walters (509) 495-2046 [email protected]
The system is designed to support the Dr. Martin Luther King Jr. Family Outreach Center’s year-round mission of providing food bank services, childcare services, and support for families May 12, 2026 11:30 ET | Source: Avista Corporation
SPOKANE, Wash., May 12, 2026 (GLOBE NEWSWIRE) -- Avista Utilities today announced the start of operations for the region’s first community-based microgrid. This marks the launch of an innovative energy system designed to help the Dr. Martin Luther King Jr. Family Outreach Center (MLK Center) stay open and continue serving the community during extended, unplanned power outages.
The Dr. Martin Luther King Jr. Family Outreach Center is a non-profit, community- based social service center located in East Central Spokane, one of the most ethnically diverse neighborhoods in Spokane County.
Located at the community center, the microgrid brings together solar power, battery storage and natural gas to provide added reliability when the power goes out, such as during extreme weather or other emergencies.
The system’s solar and battery storage will also help the MLK Center reduce its standard energy bill, allowing for more resources to be redirected into critical community programs.
“We’re here for families every day, and during emergencies, people rely on us even more. This energy system helps us continue that work and keep our doors open for the East Central neighborhood, which means so much to me,” said Freda Gandy, MLK Center executive Director.
On a typical day, the MLK Center will continue using power from the grid, supplementing energy from onsite solar and battery storage. During extended outages, batteries can help keep power flowing, with natural gas backup available if an outage lasts longer than a few hours. This helps ensure the Center remains open and operational.
The project was made possible through grant funding from Avista’s Named Communities Investment Fund (NCIF) and grant support from the Washington State Department of Commerce.
Avista’s NCIF program is the only one of its kind at a Washington utility. It was created in response to the Clean Energy Transformation Act (CETA) to help support energy projects that benefit communities facing greater challenges, including those related to extreme weather and economic or societal inequities.
“We believe the best energy solutions come from working hand in hand with the community. When we listen first and build together, we can create systems that support people today and into the future,” said Heather Rosentrater, Avista CEO and president.
About Avista Utilities
Avista Utilities is involved in the production, transmission and distribution of energy. We provide energy services and electricity to 429,000 customers and natural gas to 386,000 customers in a service territory that covers 34,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.5 million. Avista Utilities is an operating division of Avista Corp. (NYSE: AVA). For more information, please visit myavista.com.
The Avista logo is a trademark of Avista Corporation.
About the Martin Luther King Jr. Family Outreach Center
The Martin Luther King Jr. Family Outreach Center (MLK Center) is a leading nonprofit advancing equity and opportunity for low-income children, youth, and families in Spokane. Since its founding in 1970 as a small youth drop-in program, the MLK Center has become a cornerstone institution providing comprehensive, culturally responsive social and educational services. The Center addresses immediate needs and builds long-term pathways to stability, self-sufficiency, and community empowerment through an integrated approach.
Inspired by Dr. Martin Luther King Jr.’s vision, the MLK Center is committed to equitable access, expanded opportunity, and fostering environments where everyone is treated with dignity and respect. As a trusted community hub, the organization continues to strengthen families and promote a more inclusive future for Spokane.
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Contact:
Avista 24/7 Media Access: (509) 495-4174
Media: Ariana Lake (509) 279-3308 [email protected]
Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired AeroVironment, Inc. (NASDAQ: AVAV) securities between June 25, 2025 and March 10, 2026. AeroVironment operates as a defense technology provider delivering integrated capabilities across air, land, sea, space, and cyber.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that AeroVironment, Inc. (AVA) Misled Investors Regarding the Viability and Profitability of its Involvement in the SCAR Program
According to the complaint, on May 1, 2025, AeroVironment announced it had completed the acquisition of BlueHalo, LLC. Three years earlier, BlueHalo had been awarded a $1.4 billion contract to deliver BADGER phased array antenna systems (a type of advanced ground-terminal system used to track satellites), to support the U.S. Space Force’s Satellite Communication Augmentation Resource (“SCAR”) program.
Plaintiff alleges that during the class period defendants consistently assured investors that the SCAR program would drive revenue growth for AeroVironment moving forward. Defendants stated that the SCAR program represented a “tremendous growth opportunity,” that AeroVironment’s work pursuant to the contract was “very much on track,” that the customer was “asking for more [BADGER systems],” and that the Company stood “ready to build more.”
Plaintiff further alleges that during the class period defendants failed to disclose that the Company understated the likelihood that it would imminently face competition from other vendors for the work it performed in connection with the SCAR program and the U.S. Space Force’s ongoing efforts to modernize the SCN and overstated it business and financial prospects.
On January 20, 2026, AeroVironment announced that the U.S. government had issued a stop work order on the Company’s agreement to deliver BADGER systems to the SCAR program. On this news, AeroVironment's stock price fell $61.97 per share, or over 15%, to close at $330.89 per share on January 20, 2026.
Then, on March 10, 2026, AeroVironment announced disappointing financial results for the third quarter of fiscal year 2026. These financial results reflected the impact of a $151.3 million goodwill impairment in the Company’s space division after the stop work order on the Company’s BADGER systems built for the SCAR program. AeroVironment also reported that the U.S. Space Force had terminated the Company’s contract concerning the SCAR program, and as a result, it would have to “recompete” for the SCAR program. On this news, AeroVironment’s stock price fell $13.84 per share, or 6.24%, to close at $207.73 per share on March 11, 2026.
What Now: You may be eligible to participate in the class action against AeroVironment, Inc. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
To be notified if a class action against AeroVironment, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.
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The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Cable One (CABO - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Cable One is a member of our Consumer Discretionary group, which includes 258 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Cable One is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CABO's full-year earnings has moved 10% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CABO has returned about 1.4% since the start of the calendar year. Meanwhile, the Consumer Discretionary sector has returned an average of -5.7% on a year-to-date basis. This means that Cable One is outperforming the sector as a whole this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is LiveOne (LVO - Free Report) . The stock is up 10% year-to-date.
The consensus estimate for LiveOne's current year EPS has increased 11.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Cable One belongs to the Cable Television industry, a group that includes 4 individual companies and currently sits at #86 in the Zacks Industry Rank. This group has gained an average of 3.8% so far this year, so CABO is slightly underperforming its industry in this area.
On the other hand, LiveOne belongs to the Audio Video Production industry. This 6-stock industry is currently ranked #16. The industry has moved -15.5% year to date.
Investors interested in the Consumer Discretionary sector may want to keep a close eye on Cable One and LiveOne as they attempt to continue their solid performance.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, March 13:
Cable One, Inc. (CABO - Free Report) : This data, video, and voice services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing nearly 10% over the last 60 days.
Cable One has a price-to-earnings ratio (P/E) of 3.50, compared with 7.50 for the industry. The company possesses a Value Score of A.
Taboola.com Ltd. (TBLA - Free Report) : This company which operates as an artificial intelligence-based algorithmic engine platform carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 22.5% over the last 60 days.
Taboola.com has a price-to-earnings ratio (P/E) of 5.40, compared with 14.40 for the industry. The company possesses a Value Score of A.
Arrow Electronics, Inc. (ARW - Free Report) : This company that provides provides products, services, and solutions to industrial and commercial users of electronic components carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.3% over the last 60 days.
Arrow has a price-to-earnings ratio (P/E) of 10.73, compared with 21.50 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Taboola.com Ltd. (TBLA - Free Report) : This company which operates as an artificial intelligence-based algorithmic engine platform has seen the Zacks Consensus Estimate for its current year earnings increasing 22.5% over the last 60 days.
Mercury General Corporation (MCY - Free Report) : This automobile-focused property and casualty insurer from the United States has seen the Zacks Consensus Estimate for its current year earnings increasing 7.1% over the last 60 days.
DXP Enterprises, Inc. (DXPE - Free Report) : This distributor of maintenance, repair, and operating products, equipment, and services to energy and industrial customers has seen the Zacks Consensus Estimate for its current year earnings increasing 17.2% over the last 60 days.
Cable One, Inc. (CABO - Free Report) : This data, video, and voice services company has seen the Zacks Consensus Estimate for its current year earnings increasing nearly 10% over the last 60 days.
Q32 Bio Inc. (QTTB - Free Report) : This biotechnology company has seen the Zacks Consensus Estimate for its current year earnings increasing 22.9% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Cable One plans full Vyve Broadband buy, adding $310M revenues and expanding rural reach. CPS benefits from EV demand and cost discipline, with earnings seen soaring 289% this year.Phillips 66 is streamlining assets and reallocating capital to boost returns and cut debt. U.S. equity markets have been on the back foot ever since the war between Iran and Israel, backed by the United States, began. The geopolitical conflicts between the nations have resulted in soaring crude oil and natural gas prices. The major oil supply line — the Strait of Hormuz — controlled by Iran, remained severely disturbed. About 20% of globally traded oil passes through this critical shipping route. This disruption has raised concerns about global inflation.
Moreover, highly elevated valuations of AI stocks and uncertainty surrounding the durability of large-scale AI investments have hurt the technology sector. The crisis in crypto, especially Bitcoin, has further exacerbated the uncertainty.
Despite this turbulent scenario, investors should not shy away from investing in stocks. Keeping a tab on broker-favored stocks like Cable One (CABO - Free Report) , Cooper-Standard (CPS - Free Report) , Phillips 66 (PSX - Free Report) , AMN Healthcare Services (AMN - Free Report) and ArcBest Corporation (ARCB - Free Report) appears judicious.
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Criteria# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian = Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Cable One is poised for meaningful growth in 2026, driven by a series of strategic actions that strengthen its competitive foundation. In January 2026, the company announced a definitive agreement to acquire full ownership of Mega Broadband Investments (Vyve Broadband), adding approximately $310 million in annual revenues, 210,000 customers and 675,000 passings across 16 states. This deal deepens Cable One's rural broadband presence and unlocks meaningful operational efficiencies at scale.
Cable One currently sports a Zacks Rank #1 (Strong Buy). The company has an unimpressive surprise history, with its earnings surpassing the Zacks Consensus Estimate once in the last four quarters and missing thrice. The average miss is 55.4%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Cooper-Standard’s continued progress in margin expansion underscores the effectiveness of its lean manufacturing, restructuring and cost discipline initiatives. CPS is capitalizing on the rising complexity of hybrid and battery electric vehicles, which require more advanced thermal and fluid management systems.
Cooper-Standard’s current-year earnings are expected to soar 289% from the year-ago actuals. CPS currently carries a Zacks Rank #2 (Buy).
Phillips 66 is the leading player in each of its operations, like refining, chemicals and midstream, in terms of size, efficiency and strength. Diversification across multiple sectors tends to result in less volatile cash flows compared to companies focused solely on refining.
PSX is on track to enhance its potential in every business segment by streamlining its portfolio of assets and investing in growing developments. The leading refiner is pursuing a strategy focused on divesting assets outside its core operations, aiming to reallocate the proceeds to more strategic priorities like enhancing shareholder returns while reducing debt. Phillips 66 currently carries a Zacks Rank #3 (Hold). PSX’s earnings beat the Zacks Consensus Estimate in three of the past four quarters and missed once, the average beat being 16.3%.
AMN Healthcare Services' business has evolved beyond traditional healthcare staffing and recruitment services, thereby becoming a strategic total talent solutions partner with its clients. Changes in demand for healthcare services, particularly at acute healthcare hospitals and other inpatient facilities, like skilled nursing facilities, affect the demand for AMN Healthcare’s services.
AMN Healthcare’s unique MSP is helping the company gain market traction. Notably, the program helps streamline the entire workforce planning process, which facilitates the delivery of improved patient care. This has resulted in a large network of improved patient care and improved efficiency. The company currently carries a Zacks Rank #3.
ArcBest provides freight transportation services and solutions. The company is based in Fort Smith, AR. ArcBest is being well-served by its efforts to control costs, improve productivity and enhance service quality.
The company expects its 2026 earnings per share to increase 28.9% on a year-over-year basis. Its earnings have missed the consensus mark in three of the last four quarters and beat the mark in the remaining quarter. The average miss is 5.9%. ArcBest currently carries a Zacks Rank #3.
Shares of Cable One, Inc. (NYSE: CABO - Get Free Report) have earned a consensus recommendation of "Reduce" from the eight ratings firms that are presently covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a strong
Key Takeaways Easing war tensions and lower oil prices lifted stocks as investors dialed down prolonged conflict fears. Earnings yield helps investors spot undervalued stocks by comparing profit to share price. AGRO, CABO, DAN, CGAU and NESR screened as high-value picks with strong earnings yield. All major U.S. indices moved higher yesterday, gaining more than 1%. The uptick came after Donald Trump signaled progress in talks between the United States and Iran, pausing plans to strike Iran's power plants for five days. This raised hopes that tensions in the Middle East could ease. That optimism also pushed oil prices lower, with West Texas Intermediate futures pulling back and giving equities an added lift as investors dialed down fears of a prolonged conflict.
Even with recent uncertainty, the broader backdrop remains supportive. The U.S. economy is holding up well, inflation is gradually cooling (though still above target), and there’s a growing expectation of rate cuts over the next year. On top of that, corporate earnings remain strong, with double-digit growth projected in the coming quarters, alongside improving productivity and the ongoing AI-driven momentum.
Once geopolitical worries fade and the focus shifts back to fundamentals, stock selection becomes key again. In this setup, value investing looks particularly appealing—offering investors a chance to pick up solid businesses at attractive prices before the market fully catches on.
Adecoagro S.A. (AGRO - Free Report) , Cable One (CABO - Free Report) , Dana Incorporated (DAN - Free Report) , Centerra Gold (CGAU - Free Report) and National Energy Services Reunited Corp. (NESR - Free Report) are a few solid high-value picks with high earnings yields.
Using Earnings Yield MetricOne simple tool value investors use is earnings yield. It shows how much profit a company makes for each dollar of its stock price. Earnings yield, expressed as a percentage, is calculated as (Annual Earnings per Share/Market Price) x 100. It is the reverse of the price-to-earnings (P/E) ratio. A high earnings yield may mean the stock is undervalued. A low yield could mean the stock is too expensive.
Investors can also use earnings yield to compare stocks with bond returns like the 10-year Treasury yield. If the stock market's earnings yield is higher than the bond yield, stocks might be more attractive. With regard to this, earnings yield can be more illuminating than the traditional P/E ratio as it facilitates the comparison of stocks with fixed-income securities.
The Winning StrategyWe have set an Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:
Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.
Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.
Current Price greater than or equal to $5.
Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our PicksHere we have highlighted five of the 44 stocks that qualified the screening:
Adecoagro is an agricultural company engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation. The Zacks Consensus Estimate for AGRO’s 2026 earnings implies year-over-year growth of 872%. EPS estimates for the current year have moved up by 18 cents over the past seven days. Adecoagro currently sports a Zacks Rank #1 and has a Value Score of A.
Cable One is a leading U.S. broadband communications provider, serving more than 1.1 million residential and business customers across 24 states, primarily under its Sparklight brand. The Zacks Consensus Estimate for CABO’s 2026 earnings implies year-over-year growth of 161%. EPS estimates for the current year have moved up by $4.45 over the past 30 days. Cable One currently sports a Zacks Rank #1 and has a Value Score of A.
Dana is a leading supplier of power-conveyance and energy-management technologies for the global automotive and commercial-vehicle markets. The Zacks Consensus Estimate for DAN’s 2026 earnings implies year-over-year growth of 1,358%. EPS estimates for the current year have moved up by 49 cents over the past 30 days. Dana currently sports a Zacks Rank #1 and has a Value Score of A.
Centerra is a mid-tier gold and copper producer operating in North America and Türkiye. The Zacks Consensus Estimate for CGAU’s 2026 earnings implies year-over-year growth of 56%. EPS estimates for the current year have moved up by 11 cents over the past 30 days. Centerra currently sports a Zacks Rank #1 and has a Value Score of A.
National Energy delivers comprehensive oilfield, drilling and production solutions in the Middle East and North Africa region. The Zacks Consensus Estimate for NESR’s 2026 earnings implies year-over-year growth of 94%. EPS estimates for 2026 have moved up by 9 cents over the past 60 days. National Energy currently sports a Zacks Rank #1 and has a Value Score of A.
DAVENPORT and Co LLC cut its position in shares of Cable One, Inc. (NYSE: CABO) by 6.5% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 254,032 shares of the company's stock after selling 17,691 shares during the period. DAVENPORT
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Cable One (CABO - Free Report) is a stock many investors are watching right now. CABO is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.01 right now. For comparison, its industry sports an average P/E of 6.76. Over the last 12 months, CABO's Forward P/E has been as high as 11.51 and as low as 3.61, with a median of 7.64.
Another notable valuation metric for CABO is its P/B ratio of 0.71. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.29. Over the past year, CABO's P/B has been as high as 1.27 and as low as 0.40, with a median of 0.84.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CABO has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.84.
These are only a few of the key metrics included in Cable One's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CABO looks like an impressive value stock at the moment.
Cable One (CABO - Free Report) closed the last trading session at $96.24, gaining 5.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $180.5 indicates an 87.6% upside potential.
The mean estimate comprises four short-term price targets with a standard deviation of $118.59. While the lowest estimate of $90.00 indicates a 6.5% decline from the current price level, the most optimistic analyst expects the stock to surge 268.9% to reach $355.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in CABO. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why CABO Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 30.1% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, CABO currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much CABO could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways Broker-upgrade screen highlights CABO, PSX, ADM, CVI and CCRN amid renewed market volatility. Hormuz disruption and March's 50% oil jump spotlight refiners like PSX and CVI in the turmoil.ADM pushes beyond commodities into nutrition, biosolutions and other ingredients tied to wellness trends. The ongoing war between Iran and Israel, backed by the United States, has injected extreme volatility into global financial markets. Markets rallied briefly on reports of potential negotiations between Washington and Tehran and falling oil prices, but renewed military escalation quickly reversed the trend, pushing crude oil higher again and sending risk assets into another volatile cycle. The CBOE Volatility Index, which highlights market expectations of near-term volatility, has surged significantly over the past month, reflecting rising uncertainty and heightened investor nervousness.
The major oil supply line – the Strait of Hormuz – controlled by Iran, remained severely disturbed. About 20% of globally traded oil passes through this critical shipping route. Oil prices were up more than 50% in March alone. The inflated global crude oil prices will severely worsen the inflationary situation worldwide. The AI-driven disruption adds to the worries of investors.
Despite this turbulent scenario, investors should not turn their backs on investing in stocks. Keeping a tab on broker-adored stocks like Cable One (CABO - Free Report) , Phillips 66 (PSX - Free Report) , Archer Daniels Midland Company (ADM - Free Report) , CVR Energy (CVI - Free Report) and Cross Country Healthcare (CCRN - Free Report) appears prudent.
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Criteria# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Cable One is a leading U.S. broadband communications provider, serving more than 1.1 million residential and business customers across 24 states, primarily under its Sparklight brand.
Cable One currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for CABO’s 2026 earnings implies year-over-year growth of 161%. EPS estimates for the current year have moved up by 13% over the past 30 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. Phillips 66 has diverse operations and a strong focus on returning capital to shareholders.
Phillips 66 currently carries a Zacks Rank #3 (Hold). PSX’s earnings beat the Zacks Consensus Estimate in three of the last four quarters (missing once), the average beat being 16.3%.
Archer-Daniels-Midland is increasingly positioning itself beyond its traditional commodity roots, focusing on nutrition, biosolutions and value-added ingredients. This Zacks Rank #3 company has built a diversified portfolio that includes plant-based proteins, natural flavors and colors, as well as biotics supporting gut health and wellness. This positions ADM at the intersection of agriculture and evolving consumer nutrition trends.
The company expects its 2026 earnings per share to increase 26% on a year-over-year basis. ADM’s earnings surpassed the consensus mark in three of the last four quarters and missed the mark in the remaining quarter. The average beat is 3.9%.
Established in 2006, CVR Energy is a holding company that is primarily involved in renewable energy, petroleum refining, marketing and nitrogen fertilizer manufacturing through its stake in CVR Partners. It's committed to developing renewable biofuels and actively participating in the energy transition to reduce carbon emissions.
This Sugar Land, TX-based oil and gas refining and marketing company surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters, missing the mark on the other occasion. The Zacks Consensus Estimate for 2026 earnings has been revised 110.5% upward over the past 60 days. CVR Energy currently carries a Zacks Rank #3.
Cross Country Healthcare is a talent management and other consultative services provider for healthcare clients. It is benefiting from the strength in its current relationships and momentum in home care, physician staffing and education.
CCRN’s home care staffing business is being aided by a rising number of PACE program wins. The physician staffing business is growing on higher billable days and revenue per day sales. Improving operating leverage from volume growth and proactive cost management are driving the bottom line.
Cross Country Healthcare currently carries a Zacks Rank #3. CCRN’s earnings missed the Zacks Consensus Estimate in three of the last four quarters (surpassing the mark on the other occasion), the average miss being 97.3%.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Cable One (CABO - Free Report) . CABO is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.01, while its industry has an average P/E of 6.81. CABO's Forward P/E has been as high as 11.51 and as low as 3.61, with a median of 7.64, all within the past year.
Investors should also recognize that CABO has a P/B ratio of 0.71. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.25. Within the past 52 weeks, CABO's P/B has been as high as 1.27 and as low as 0.40, with a median of 0.84.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CABO has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.81.
These are only a few of the key metrics included in Cable One's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CABO looks like an impressive value stock at the moment.
Shares of Cable One, Inc. (NYSE:CABO – Get Free Report) have received an average rating of “Reduce” from the eight analysts that are currently covering the stock, MarketBeat Ratings reports. Three analysts have rated the stock with a sell recommendation, four have given a hold recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $114.25.
CABO has been the topic of several analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cable One in a report on Wednesday, January 21st. Wells Fargo & Company decreased their price objective on Cable One from $107.00 to $90.00 and set an “underweight” rating on the stock in a report on Friday, February 27th. TD Cowen decreased their price objective on Cable One from $260.00 to $142.00 and set a “hold” rating on the stock in a report on Friday, February 27th. Zacks Research upgraded Cable One from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 12th. Finally, BNP Paribas Exane downgraded Cable One from a “neutral” rating to an “underperform” rating and set a $80.00 price objective on the stock. in a report on Tuesday, February 24th.
Get Our Latest Stock Analysis on Cable One
Institutional Inflows and Outflows Hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC increased its holdings in Cable One by 180.0% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 140 shares of the company’s stock valued at $25,000 after purchasing an additional 90 shares during the period. Quarry LP increased its holdings in Cable One by 1,011.1% during the 3rd quarter. Quarry LP now owns 200 shares of the company’s stock valued at $35,000 after purchasing an additional 182 shares during the period. Parallel Advisors LLC increased its holdings in Cable One by 2,288.9% during the 3rd quarter. Parallel Advisors LLC now owns 215 shares of the company’s stock valued at $38,000 after purchasing an additional 206 shares during the period. Quantbot Technologies LP purchased a new position in Cable One during the 3rd quarter valued at about $39,000. Finally, Hantz Financial Services Inc. increased its holdings in Cable One by 107.3% during the 3rd quarter. Hantz Financial Services Inc. now owns 255 shares of the company’s stock valued at $45,000 after purchasing an additional 132 shares during the period. Hedge funds and other institutional investors own 89.92% of the company’s stock.
Cable One Stock Up 5.3% CABO opened at $96.66 on Tuesday. The company has a market cap of $548.26 million, a P/E ratio of -1.51 and a beta of 0.69. The business’s 50-day moving average price is $101.04 and its 200-day moving average price is $116.92. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 1.81. Cable One has a 12 month low of $70.37 and a 12 month high of $277.55.
Cable One (NYSE:CABO – Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported ($1.35) EPS for the quarter, missing the consensus estimate of $7.60 by ($8.95). The company had revenue of $363.74 million during the quarter, compared to analysts’ expectations of $368.59 million. Cable One had a positive return on equity of 7.36% and a negative net margin of 23.74%. On average, equities analysts expect that Cable One will post 32.08 EPS for the current year.
About Cable One (Get Free Report)
Cable One, Inc (NYSE:CABO) is an American provider of broadband communications services, offering a suite of residential and business solutions over a hybrid fiber-coaxial network. The company delivers high-speed internet access, digital video, voice communications and mobile services, alongside advanced managed Wi-Fi and cybersecurity tools. Cable One’s infrastructure supports both traditional cable offerings and converged IP-based platforms designed to meet evolving customer needs.
In addition to consumer-focused services, Cable One caters to small and medium-sized enterprises with dedicated business-class connectivity, Ethernet solutions and cloud-based voice applications.
Read More Five stocks we like better than Cable One
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PHOENIX--(BUSINESS WIRE)--Cable One, Inc. (NYSE: CABO) will host a conference call with the financial community to discuss results for the first quarter 2026 on Thursday, April 30, 2026 at 5 p.m. Eastern Time (ET). Cable One will issue a press release reporting its results after market close on Thursday, April 30, 2026.
The conference call will be available via a live audio webcast on the Cable One Investor Relations website at ir.cableone.net or by dialing 1-833-461-5787 (International: 1-585-542-9983) and using the meeting ID 220734119. Participants should register for the webcast or dial in for the conference call shortly before 5 p.m. ET.
A replay of the call will be available from April 30, 2026 until May 28, 2026 at ir.cableone.net.
To automatically receive Cable One financial news by email, please visit the Cable One Investor Relations website and subscribe to Email Alerts.
About Cable One
Cable One, Inc. (NYSE:CABO) is a leading broadband communications provider delivering exceptional service and enabling more than 1 million residential and business customers across 24 states to thrive and stay connected to what matters most. Through Sparklight®, the brand our customers know and trust, we’re not just shaping the future of connectivity – we’re transforming it with a commitment to innovation, reliability and customer experience at our core.
Our robust infrastructure and cutting-edge technology don’t just keep our customers connected; they help drive progress in education, business and everyday life. We’re dedicated to bridging the digital divide, empowering our communities and fostering a more connected world. When our customers choose Cable One, they are choosing a team that is always working for them – one that believes in the relentless pursuit of reliability, because being a trusted neighbor isn’t just what we do – it’s who we are.
On April 16, 2026, Cable One Inc (CABO) shares rose 12.0% today, bringing the current price to $107.40. The stock has experienced a 52-week range of $70.37 to $
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Cable One (CABO - Free Report) . CABO is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.01 right now. For comparison, its industry sports an average P/E of 6.24. Over the last 12 months, CABO's Forward P/E has been as high as 11.51 and as low as 3.61, with a median of 7.64.
We should also highlight that CABO has a P/B ratio of 0.71. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.17. Within the past 52 weeks, CABO's P/B has been as high as 1.27 and as low as 0.40, with a median of 0.84.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CABO has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.79.
Value investors will likely look at more than just these metrics, but the above data helps show that Cable One is likely undervalued currently. And when considering the strength of its earnings outlook, CABO sticks out as one of the market's strongest value stocks.
PHOENIX--(BUSINESS WIRE)--Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable One”) today reported financial and operating results for the quarter ended March 31, 2026.
Three Months Ended March 31,
(dollars in thousands)
2026
2025
$ Change
% Change
Revenues
$
352,957
$
380,601
$
(27,644
)
(7.3
)%
Net income
$
35,774
$
2,607
$
33,167
NM
Net profit margin
10.1
%
0.7
%
Cash flows from operating activities
$
118,220
$
116,332
$
1,888
1.6
%
Adjusted EBITDA(1)
$
183,348
$
202,712
$
(19,364
)
(9.6
)%
Adjusted EBITDA margin(1)
51.9
%
53.3
%
Capital expenditures
$
68,424
$
71,130
$
(2,706
)
(3.8
)%
Adjusted EBITDA less capital expenditures(1)
$
114,924
$
131,582
$
(16,658
)
(12.7
)%
“What’s become clear to me early on is that Cable One has all the right building blocks in place, including a resilient business model, a high-capacity network, strong local market positions and the ability to generate meaningful cash flow,” said Jim Holanda, Chief Executive Officer of Cable One. “Our focus now is on sharpening execution across the business, particularly in how we go to market, retain customers and simplify our product offering, to translate these strengths into improved performance and long-term value creation.”
First Quarter 2026 Summary:
Total revenues were $353.0 million in the first quarter of 2026 compared to $380.6 million in the first quarter of 2025, with $10.0 million of the decrease attributable to a decline in residential video revenues. Residential data revenues were $213.6 million in the first quarter of 2026 compared to $225.1 million in the first quarter of 2025, a decrease of $11.6 million, or 5.1%, year-over-year. Residential data revenues declined $6.1 million, or 2.8%, on a sequential quarterly basis. Business data revenues for the first quarter of 2026 were $56.3 million, a decrease of $1.0 million, or 1.8%, year-over-year. Net income was $35.8 million and $2.6 million in the first quarter of 2026 and 2025, respectively. Adjusted EBITDA was $183.3 million in the first quarter of 2026 compared to $202.7 million in the first quarter of 2025. Net profit margin was 10.1% and Adjusted EBITDA margin was 51.9% in the first quarter of 2026. Net cash provided by operating activities was $118.2 million in the first quarter of 2026 compared to $116.3 million in the first quarter of 2025. Adjusted EBITDA less capital expenditures was $114.9 million in the first quarter of 2026 compared to $131.6 million in the first quarter of 2025. The Company completed its previously announced fiber-to-the-tower contract sale for $42.0 million in cash, the proceeds of which were used to accelerate debt repayment. The Company paid down an aggregate $90.6 million principal amount of debt during the first quarter of 2026, consisting of repurchases of $33.7 million aggregate principal amount of senior notes, $27.4 million of term loan prepayments, $25.0 million of revolver credit facility ("Revolver") paydowns and $4.4 million of scheduled amortization payments. First Quarter 2026 Financial Results Compared to First Quarter 2025
Revenues were $353.0 million in the first quarter of 2026 compared to $380.6 million in the first quarter of 2025. Residential data revenues decreased $11.6 million, or 5.1%, year-over-year due primarily to a decrease in residential data subscribers, partially offset by a 0.8% increase in average revenue per unit ("ARPU"). Residential video revenues decreased $10.0 million, or 19.8%, year-over-year due primarily to a decrease in residential video subscribers, partially offset by rate adjustments enacted during 2025. Business data revenues decreased $1.0 million, or 1.8%, year-over-year.
Net income was $35.8 million in the first quarter of 2026 compared to $2.6 million in the prior year quarter. The year-over-year increase was due primarily to a $26.6 million gain on sale of fiber-to-the-tower contract rights and $32.9 million of lower equity investment losses, partially offset by a decrease in revenues. Net profit margin was 10.1% in the first quarter of 2026 compared to 0.7% in the prior year quarter.
Adjusted EBITDA was $183.3 million and $202.7 million for the first quarter of 2026 and 2025, respectively. Adjusted EBITDA margin was 51.9% in the first quarter of 2026 compared to 53.3% in the prior year quarter.
Net cash provided by operating activities was $118.2 million in the first quarter of 2026 compared to $116.3 million in the first quarter of 2025. Capital expenditures for the first quarter of 2026 totaled $68.4 million compared to $71.1 million for the first quarter of 2025. Adjusted EBITDA less capital expenditures for the first quarter of 2026 was $114.9 million compared to $131.6 million in the prior year quarter.
Liquidity and Capital Resources
At March 31, 2026, the Company had $165.6 million of cash and cash equivalents on hand compared to $152.8 million at December 31, 2025. The Company’s debt balance was $3.12 billion and $3.21 billion at March 31, 2026 and December 31, 2025, respectively. The Company had $550.0 million of borrowings and $700.0 million available for borrowing under the Revolver as of March 31, 2026. The Company's weighted average cost of debt was 3.7% for the first quarter of 2026.
The Company borrowed $575.0 million under the Revolver to retire its $575.0 million convertible notes in March 2026.
The Company voluntarily repurchased $33.7 million aggregate principal amount of outstanding senior notes and prepaid $27.4 million aggregate principal amount of outstanding term loan borrowings during the first quarter of 2026, recognizing $9.8 million of gains on debt extinguishments.
The Company's capital expenditures by category for the three months ended March 31, 2026 and 2025 were as follows (in thousands):
Three Months Ended March 31,
2026
2025
Customer premise equipment(1)
$
19,550
$
16,568
Commercial(2)
2,969
5,177
Scalable infrastructure(3)
7,279
9,182
Line extensions(4)
14,339
14,521
Upgrade/rebuild(5)
4,184
3,399
Support capital(6)
20,103
22,282
Total
$
68,424
$
71,130
(1)
Customer premise equipment includes costs incurred at customer locations, including installation costs and customer premise equipment (e.g., modems and set-top boxes).
(2)
Commercial includes costs related to securing business services customers and primary service units ("PSUs"), including small and medium-sized businesses and enterprise customers.
(3)
Scalable infrastructure includes costs not related to customer premise equipment to secure growth of new customers and PSUs or provide service enhancements (e.g., headend equipment).
(4)
Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
(5)
Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments.
(6)
Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles) and capitalized internal labor costs not associated with customer installation activities.
Conference Call
Cable One will host a conference call with the financial community to discuss results for the first quarter of 2026 on Thursday, April 30, 2026, at 5 p.m. Eastern Time (ET).
The conference call will be available via an audio webcast on the Cable One Investor Relations website at ir.cableone.net or by dialing 1-833-461-5787 (International: 1-585-542-9983) and using the access code 220734119. Participants should register for the webcast or dial in for the conference call shortly before 5 p.m. ET.
A replay of the call will be available from April 30, 2026 until May 28, 2026 at ir.cableone.net.
Additional Information Available on Website
The information in this press release should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2026, which will be posted on the “SEC Filings” section of the Cable One Investor Relations website at ir.cableone.net when it is filed with the Securities and Exchange Commission (the “SEC”). Investors and others interested in more information about Cable One should consult the Company’s website, which is regularly updated with financial and other important information about the Company.
Use of Non-GAAP Financial Measures
The Company uses certain measures that are not defined by generally accepted accounting principles in the United States (“GAAP”) to evaluate various aspects of its business. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA are non-GAAP financial measures and should be considered in addition to, not as superior to, or as a substitute for, net income, net profit margin, net cash provided by operating activities or capital expenditures as a percentage of net income reported in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA less capital expenditures are reconciled to net income, Adjusted EBITDA margin is reconciled to net profit margin and capital expenditures as a percentage of Adjusted EBITDA is reconciled to capital expenditures as a percentage of net income. Adjusted EBITDA less capital expenditures is also reconciled to net cash provided by operating activities. These reconciliations are included in the “Reconciliations of Non-GAAP Measures” tables within this press release.
“Adjusted EBITDA” is defined as net income plus net interest expense, income tax provision, depreciation and amortization, equity-based compensation, severance and contract termination costs, acquisition-related costs, net (gain) loss on asset sales and disposals, system conversion costs, net equity method investment (income) loss, executive search and transition costs, MBI integration costs, net other (income) expense and any special items, as applicable, as provided in the “Reconciliations of Non-GAAP Measures” tables within this press release. Executive search and transition costs consist of expenses incurred in connection with changes in executive leadership, including make-whole payment, severance and other separation benefits, and costs related to executive search and onboarding. MBI integration costs consist of expenses for planning and implementing system conversion, rebranding, employee-related costs (including severance and retention), and other professional fees incurred in connection with the integration of MBI. These costs are associated with discrete events and are incremental to normal, recurring, operating expenses and as such, are excluded from Adjusted EBITDA. Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company’s business as well as other non-cash or special items and is unaffected by the Company’s capital structure or investment activities. This measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the Company’s cash cost of debt financing. These costs are evaluated through other financial measures.
“Adjusted EBITDA margin” is defined as Adjusted EBITDA divided by total revenues.
“Adjusted EBITDA less capital expenditures,” when used as a liquidity measure, is calculated as net cash provided by operating activities excluding the impact of capital expenditures, net interest expense, income tax provision (benefit), changes in operating assets and liabilities, change in deferred income taxes and any special items, as applicable, as provided in the “Reconciliations of Non-GAAP Measures” tables within this press release.
“Capital expenditures as a percentage of Adjusted EBITDA” is defined as capital expenditures divided by Adjusted EBITDA.
The Company uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA to assess its performance, and it also uses Adjusted EBITDA less capital expenditures as an indicator of its ability to fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the measure used in the leverage ratio calculations under the Company’s credit agreement and the indenture governing the Company’s non-convertible senior unsecured notes to determine compliance with the covenants contained in the credit agreement and the ability to take certain actions under the indenture governing the non-convertible senior unsecured notes. Adjusted EBITDA, capital expenditures as a percentage of Adjusted EBITDA and Adjusted EBITDA less capital expenditures are also significant performance measures that have been used by the Company in its incentive compensation programs. Adjusted EBITDA does not take into account cash used for mandatory debt service requirements or other non-discretionary expenditures, and thus does not represent residual funds available for discretionary uses.
The Company believes that Adjusted EBITDA, Adjusted EBITDA margin and capital expenditures as a percentage of Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. The Company believes that Adjusted EBITDA less capital expenditures is useful to investors as it shows the Company’s performance while taking into account cash outflows for capital expenditures and is one of several indicators of the Company’s ability to service debt, make investments and/or return capital to its stockholders.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures, capital expenditures as a percentage of Adjusted EBITDA and similar measures with similar titles are common measures used by investors, analysts and peers to compare performance in the Company’s industry, although the Company’s measures of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA may not be directly comparable to similarly titled measures reported by other companies.
About Cable One
Cable One, Inc. (NYSE:CABO) is a leading broadband communications provider delivering exceptional service and enabling more than 1 million residential and business customers across 24 states to thrive and stay connected to what matters most. Through Sparklight®, the brand our customers know and trust, we're not just shaping the future of connectivity–we're transforming it with a commitment to innovation, reliability and customer experience at our core.
Our robust infrastructure and cutting-edge technology don’t just keep our customers connected; they drive progress in education, business and everyday life. We’re dedicated to bridging the digital divide, empowering our communities and fostering a more connected world. When our customers choose Cable One, they are choosing a team that is always working for them–one that believes in the relentless pursuit of reliability, because being a trusted neighbor isn’t just what we do–it’s who we are.
This communication and the related conference call may contain “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about the Company’s industry, business, strategy, technologies, acquisitions and strategic investments, market expansion plans, dividend policy, capital allocation, financing strategy, the purchase price payable pursuant to the put option associated with the remaining equity interests in Mega Broadband Investments Holdings LLC (“MBI”) which was exercised on January 2, 2026 (such purchase price, the “Put Price”) and the anticipated timeline to consummate such transaction, the Company's ability and sources of capital to fund the Put Price, MBI’s future indebtedness and the Company's financial results and financial condition. Forward-looking statements often include words such as “will,” “should,” “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. The Company’s actual results may vary materially from those expressed or implied in its forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by the Company or on its behalf. Important factors that could cause the Company’s actual results to differ materially from those in its forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors, which are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 26, 2026 (the "2025 Form 10-K"):
rising levels of competition from historical and new entrants in the Company’s markets; recent and future changes in technology, and the Company's ability to develop, deploy and operate new technologies, service offerings and customer service platforms; risks associated with the Company's use of artificial intelligence; the Company’s ability to grow its residential data and business data revenues and customer base; increases in programming costs and retransmission fees; the Company’s ability to obtain hardware, software and operational support from vendors, including the potential impacts of changes in trade policy and tariffs; risks relating to existing or future acquisitions and strategic investments by the Company, including risks associated with the exercise of the Put option associated with the remaining equity interests in MBI and the acquisition and integration of MBI; the integrity and security of the Company’s network and information systems; the impact of possible security breaches and other disruptions, including cyber-attacks; the Company’s failure to obtain necessary intellectual and proprietary rights to operate its business and the risk of intellectual property claims and litigation against the Company; the Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures; impairments of intangible assets and goodwill; legislative or regulatory efforts to impose new requirements on the Company’s data services; additional regulation of the Company’s video and voice services or changes to government subsidy programs; the Company’s ability to renew cable system franchises; increases in pole attachment costs; changes in local governmental franchising authority and broadcast carriage regulations; the potential adverse effect of the Company’s level of indebtedness on its business, financial condition or results of operations and cash flows; the restrictions the terms of the Company’s indebtedness place on its business and corporate actions; the possibility that interest rates will rise, causing the Company’s obligations to service its variable rate indebtedness to increase significantly; risks associated with the Company’s convertible indebtedness; the Company’s ability to pay dividends; our reduced stock price; provisions in the Company’s charter, by-laws and Delaware law that could discourage takeovers and limit the judicial forum for certain disputes; adverse economic conditions, labor shortages, supply chain disruptions, changes in rates of inflation and the level of move activity in the housing sector; pandemics, epidemics or disease outbreaks, such as the COVID-19 pandemic, have, and may in the future, disrupt the Company's business and operations, which could materially affect the Company's business, financial condition, results of operations and cash flows; lower demand for the Company's residential data and business data products; fluctuations in the Company’s stock price; dilution from equity awards, convertible indebtedness and potential future convertible debt and stock issuances; damage to the Company’s reputation or brand image; the Company’s ability to retain key employees (whom the Company refers to as associates); the Company's ability to successfully transition to its new Chief Executive Officer; the Company’s ability to incur future indebtedness; provisions in the Company’s charter that could limit the liabilities for directors; and the other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including but not limited to those described under "Risk Factors" in the 2025 Form 10-K and in its subsequent filings with the SEC. Any forward-looking statements made by the Company in this communication speak only as of the date on which they are made. The Company is under no obligation, and expressly disclaims any obligation, except as required by law, to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.
CABLE ONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three Months Ended March 31,
(dollars in thousands, except per share data)
2026
2025
Change
% Change
Revenues:
Residential data
$
213,571
$
225,121
$
(11,550
)
(5.1
)%
Residential video
40,769
50,805
(10,036
)
(19.8
)%
Residential voice
6,509
7,044
(535
)
(7.6
)%
Business data
56,288
57,293
(1,005
)
(1.8
)%
Business other
14,238
16,883
(2,645
)
(15.7
)%
Other
21,582
23,455
(1,873
)
(8.0
)%
Total Revenues
352,957
380,601
(27,644
)
(7.3
)%
Costs and Expenses:
Operating (excluding depreciation and amortization)
93,885
99,851
(5,966
)
(6.0
)%
Selling, general and administrative
87,187
95,414
(8,227
)
(8.6
)%
Depreciation and amortization
82,494
85,465
(2,971
)
(3.5
)%
(Gain) loss on asset sales and disposals, net
2,785
4,196
(1,411
)
(33.6
)%
Total Costs and Expenses
266,351
284,926
(18,575
)
(6.5
)%
Income from operations
86,606
95,675
(9,069
)
(9.5
)%
Interest expense, net
(30,269
)
(34,463
)
4,194
(12.2
)%
Other income (expense), net
22,960
(1,412
)
24,372
NM
Income before income taxes and equity method investment income (loss), net
79,297
59,800
19,497
32.6
%
Income tax provision
(19,421
)
(203
)
(19,218
)
NM
Income before equity method investment income (loss), net
59,876
59,597
279
0.5
%
Equity method investment income (loss), net
(24,102
)
(56,990
)
32,888
(57.7
)%
Net income
$
35,774
$
2,607
$
33,167
NM
Net Income per Common Share:
Basic
$
6.29
$
0.46
$
5.83
NM
Diluted
$
6.12
$
0.46
$
5.66
NM
Weighted Average Common Shares Outstanding:
Basic
5,685,897
5,633,810
52,087
0.9
%
Diluted
6,083,488
5,644,766
438,722
7.8
%
Unrealized gain (loss) on cash flow hedges and other, net of tax
4,076
(14,986
)
19,062
(127.2
)%
Comprehensive income (loss)
$
39,850
$
(12,379
)
$
52,229
NM
CABLE ONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands, except par values)
March 31, 2026
December 31, 2025
Assets
Current Assets:
Cash and cash equivalents
$
165,601
$
152,769
Accounts receivable, net
50,365
58,578
Prepaid and other current assets
84,390
95,238
Total Current Assets
300,356
306,585
Equity investments
589,978
613,841
Property, plant and equipment, net
1,780,771
1,784,201
Intangible assets, net
1,947,089
1,974,359
Goodwill
840,826
840,826
Other noncurrent assets
70,609
68,541
Total Assets
$
5,529,629
$
5,588,353
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities
$
131,564
$
143,058
Deferred revenue
21,459
22,731
Current portion of long-term debt
18,197
593,535
Total Current Liabilities
171,220
759,324
Long-term debt
3,088,092
2,600,392
Deferred income taxes
769,101
769,924
Other noncurrent liabilities
22,418
25,075
Total Liabilities
4,050,831
4,154,715
Commitments and contingencies
Stockholders' Equity:
Preferred stock ($0.01 par value; 4,000,000 shares authorized; none issued or outstanding)
—
—
Common stock ($0.01 par value; 40,000,000 shares authorized; 6,175,399 shares issued; and 5,672,182 and 5,635,219 shares outstanding as of March 31, 2026 and December 31, 2025, respectively)
62
62
Additional paid-in capital
688,128
681,866
Retained earnings
1,370,327
1,334,553
Accumulated other comprehensive income (loss)
23,526
19,450
Treasury stock, at cost (503,217 and 540,180 shares held as of March 31, 2026 and December 31, 2025, respectively)
(603,245
)
(602,293
)
Total Stockholders' Equity
1,478,798
1,433,638
Total Liabilities and Stockholders' Equity
$
5,529,629
$
5,588,353
CABLE ONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
(in thousands)
2026
2025
Cash flows from operating activities:
Net income
$
35,774
$
2,607
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
82,494
85,465
Amortization of debt discount and issuance costs
3,009
2,445
Equity-based compensation
7,564
11,311
Gain on debt extinguishments
(9,833
)
—
Change in deferred income taxes
(2,548
)
(18,571
)
(Gain) loss on asset sales and disposals, net
2,785
4,196
Gain on sale of fiber-to-the-tower contract rights
(26,635
)
—
Equity method investment (income) loss, net
24,102
56,990
Fair value adjustments
13,889
4,611
Changes in operating assets and liabilities:
Accounts receivable, net
6,311
9,755
Prepaid and other current assets
(475
)
(19,671
)
Accounts payable and accrued liabilities
(12,309
)
(16,651
)
Deferred revenue
(437
)
(261
)
Other
(5,471
)
(5,894
)
Net cash provided by operating activities
118,220
116,332
Cash flows from investing activities:
Capital expenditures
(68,424
)
(71,130
)
Change in accrued expenses related to capital expenditures
561
3,639
Proceeds from sales of property, plant and equipment
846
233
Proceeds from sales of equity investments
1,112
10,702
Proceeds from sale of fiber-to-the-tower contract rights
42,000
—
Net cash provided by (used in) investing activities
(23,905
)
(56,556
)
Cash flows from financing activities:
Proceeds from long-term debt borrowings
575,000
—
Debt repayments
(655,531
)
(44,815
)
Payment of withholding tax for equity awards
(952
)
(2,272
)
Dividends paid to stockholders
—
(17,232
)
Net cash used in financing activities
(81,483
)
(64,319
)
Change in cash and cash equivalents
12,832
(4,543
)
Cash and cash equivalents, beginning of period
152,769
153,631
Cash and cash equivalents, end of period
$
165,601
$
149,088
Supplemental cash flow disclosures:
Cash paid for interest, net of capitalized interest
$
25,072
$
31,386
Cash paid for income taxes, net of refunds received
$
4,620
$
21,994
CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP MEASURES
(Unaudited)
Three Months Ended March 31,
(dollars in thousands)
2026
2025
$ Change
% Change
Net income
$
35,774
$
2,607
$
33,167
NM
Net profit margin
10.1
%
0.7
%
Plus: Interest expense, net
30,269
34,463
(4,194
)
(12.2
)%
Income tax provision
19,421
203
19,218
NM
Depreciation and amortization
82,494
85,465
(2,971
)
(3.5
)%
Equity-based compensation
7,564
11,311
(3,747
)
(33.1
)%
Severance and contract termination costs
—
328
(328
)
(100.0
)%
Acquisition-related costs
1,645
1,432
213
14.9
%
(Gain) loss on asset sales and disposals, net
2,785
4,196
(1,411
)
(33.6
)%
System conversion costs
628
4,305
(3,677
)
(85.4
)%
Equity method investment (income) loss, net
24,102
56,990
(32,888
)
(57.7
)%
Executive search and transition costs
905
—
905
NM
MBI integration costs
721
—
721
NM
Other (income) expense, net
(22,960
)
1,412
(24,372
)
NM
Adjusted EBITDA
$
183,348
$
202,712
$
(19,364
)
(9.6
)%
Adjusted EBITDA margin
51.9
%
53.3
%
Less: Capital expenditures
$
68,424
$
71,130
$
(2,706
)
(3.8
)%
Capital expenditures as a percentage of net income
191.3
%
2,728.4
%
Capital expenditures as a percentage of Adjusted EBITDA
37.3
%
35.1
%
Adjusted EBITDA less capital expenditures
$
114,924
$
131,582
$
(16,658
)
(12.7
)%
Three Months Ended March 31,
(dollars in thousands)
2026
2025
$ Change
% Change
Net cash provided by operating activities
$
118,220
$
116,332
$
1,888
1.6
%
Capital expenditures
(68,424
)
(71,130
)
2,706
(3.8
)%
Interest expense, net
30,269
34,463
(4,194
)
(12.2
)%
Amortization of debt discount and issuance costs
(3,009
)
(2,445
)
(564
)
23.1
%
Income tax provision
19,421
203
19,218
NM
Changes in operating assets and liabilities
12,381
32,722
(20,341
)
(62.2
)%
Gain on debt extinguishments
9,833
—
9,833
NM
Change in deferred income taxes
2,548
18,571
(16,023
)
(86.3
)%
Acquisition-related costs
1,645
1,432
213
14.9
%
Severance and contract termination costs
—
328
(328
)
(100.0
)%
System conversion costs
628
4,305
(3,677
)
(85.4
)%
Fair value adjustments
(13,889
)
(4,611
)
(9,278
)
201.2
%
Executive search and transition costs
905
—
905
NM
MBI integration costs
721
—
721
NM
Gain on sale of fiber-to-the-tower contract rights
26,635
—
26,635
NM
Other (income) expense, net
(22,960
)
1,412
(24,372
)
NM
Adjusted EBITDA less capital expenditures
$
114,924
$
131,582
$
(16,658
)
(12.7
)%
CABLE ONE, INC.
OPERATING STATISTICS
(Unaudited)
As of March 31,
(in thousands, except percentages and ARPU data)
2026
2025
Change
% Change
Passings(1)
2,847.0
2,849.0
(2.0
)
(0.1
)%
Residential Customers
907.0
970.1
(63.1
)
(6.5
)%
Data PSUs
887.1
945.0
(57.9
)
(6.1
)%
Video PSUs
78.0
101.3
(23.2
)
(22.9
)%
Voice PSUs
53.6
64.6
(11.0
)
(17.0
)%
Total residential PSUs
1,018.8
1,110.8
(92.1
)
(8.3
)%
Business Customers
106.5
105.0
1.5
1.4
%
Data PSUs
98.5
99.8
(1.3
)
(1.3
)%
Video PSUs
4.4
6.4
(1.9
)
(30.2
)%
Voice PSUs
37.4
38.0
(0.6
)
(1.6
)%
Total business services PSUs
140.3
144.1
(3.9
)
(2.7
)%
Total Customers
1,013.5
1,075.1
(61.6
)
(5.7
)%
Total non-video
931.4
964.9
(33.5
)
(3.5
)%
Percent of total
91.9
%
89.7
%
2.2
%
Data PSUs
985.6
1,044.8
(59.2
)
(5.7
)%
Video PSUs
82.5
107.6
(25.1
)
(23.4
)%
Voice PSUs
91.0
102.6
(11.6
)
(11.3
)%
Total PSUs
1,159.0
1,255.0
(95.9
)
(7.6
)%
Penetration
Data
34.6
%
36.7
%
(2.1
)%
Video
2.9
%
3.8
%
(0.9
)%
Voice
3.2
%
3.6
%
(0.4
)%
Share of First Quarter Revenues
Residential data
60.5
%
59.1
%
1.4
%
Business services
20.0
%
19.5
%
0.5
%
Total
80.5
%
78.6
%
1.9
%
ARPU - First Quarter
Residential data(2)
$
79.51
$
78.84
$
0.67
0.8
%
Residential video(2)
$
167.98
$
162.30
$
5.68
3.5
%
Residential voice(2)
$
39.60
$
35.58
$
4.02
11.3
%
Business services(3) (4)
$
219.62
$
234.48
$
(14.86
)
(6.3
)%
Note: All totals, percentages and year-over-year changes are calculated using exact numbers. Minor differences may exist due to rounding. (1)
Passings represent the estimated number of serviceable and marketable homes and businesses passed by the Company's active plant based on available information. Beginning in the third quarter of 2025, the Company began using an external reporting service for determining reported passings. The service provider generates updated counts biannually, during the first and third quarters of each year. Therefore, going forward the Company's reported passings for the second and fourth quarters of the year will remain unchanged from the preceding sequential quarter. Passings as of March 31, 2026 reflect certain refinements to the service provider's counting methodology.
(2)
ARPU values represent the applicable quarterly residential service revenues (excluding installation and activation fees) divided by the corresponding average of the number of PSUs at the beginning and end of each period, divided by three, except that for any PSUs added or subtracted as a result of an acquisition or divestiture occurring during the period, the associated ARPU values represent the applicable residential service revenues (excluding installation and activation fees) divided by the pro-rated average number of PSUs during such period.
(3)
ARPU values represent quarterly business services revenues divided by the average of the number of business customer relationships at the beginning and end of each period, divided by three, except that for any business customer relationships added or subtracted as a result of an acquisition or divestiture occurring during the period, the associated ARPU values represent business services revenues divided by the pro-rated average number of business customer relationships during such period.
(4)
In March 2026, the Company sold certain fiber-to-the-tower contract rights for cash proceeds of $42.0 million. Such contracts generated $9.0 million of business data revenues during 2025.
Cable One (CABO - Free Report) came out with quarterly earnings of $6.12 per share, missing the Zacks Consensus Estimate of $7.77 per share. This compares to earnings of $12.32 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -21.24%. A quarter ago, it was expected that this telecommunications company would post earnings of $7.6 per share when it actually produced a loss of $1.35, delivering a surprise of -117.76%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Cable One, which belongs to the Zacks Cable Television industry, posted revenues of $352.96 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $380.6 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cable One shares have lost about 20.2% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Cable One?While Cable One has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cable One was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $7.68 on $357.79 million in revenues for the coming quarter and $33.39 on $1.41 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Cable Television is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Consumer Discretionary sector, Johnson Outdoor (JOUT - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 8.
This outdoor gear company is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of +295.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Johnson Outdoor's revenues are expected to be $181.93 million, up 8.1% from the year-ago quarter.
Cable One (CABO - Free Report) reported $352.96 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 7.3%. EPS of $6.12 for the same period compares to $12.32 a year ago.
The reported revenue represents a surprise of -1.89% over the Zacks Consensus Estimate of $359.75 million. With the consensus EPS estimate being $7.77, the EPS surprise was -21.24%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cable One performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Residential PSUs - Data: 887,100 versus 891,700 estimated by two analysts on average.Residential PSUs - Video: 78,000 versus the two-analyst average estimate of 78,900.Residential PSUs - Voice: 53,600 versus the two-analyst average estimate of 53,300.Residential ARPU - Voice: $39.60 compared to the $36.99 average estimate based on two analysts.Residential ARPU - Data: $79.51 versus the two-analyst average estimate of $80.73.Residential ARPU - Video: $167.98 versus $173.53 estimated by two analysts on average.Total Residential PSUs: 1,019 versus 969 estimated by two analysts on average.Revenues- Residential Video: $40.77 million versus $42.18 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -19.8% change.Revenues- Other: $21.58 million versus the three-analyst average estimate of $23.53 million. The reported number represents a year-over-year change of -8%.Revenues- Residential Voice: $6.51 million versus the three-analyst average estimate of $6.02 million. The reported number represents a year-over-year change of -7.6%.Revenues- Residential Data: $213.57 million versus the three-analyst average estimate of $216.72 million. The reported number represents a year-over-year change of -5.1%.View all Key Company Metrics for Cable One here>>>
Shares of Cable One have returned +0.5% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Published in earnings earnings-estimates-revisions earnings-surprise
PHOENIX, June 04, 2026 (GLOBE NEWSWIRE) -- Sparklight® has invested nearly $1 billion over the past three years to expand and enhance its fiber-rich network across its 24-state footprint, helping deliver faster connectivity and greater capacity for residential and business customers and critical community services.
As part of its continued network evolution, Sparklight has expanded fiber deeper into the areas it serves to build a future-ready network designed to support long-term growth and economic development. With a fiber-rich network spanning more than 31,000 route miles, Sparklight’s investments help create the infrastructure needed to support emerging technologies, increasing digital demands and the evolving connectivity needs of homes and businesses.
Gigabit internet service is now available across all Sparklight markets, and Multi-Gig speeds are available in more than half its service areas. The company also continues advancing its long-term 10G technology roadmap to support the next generation of connected experiences.
Together, these investments and services help deliver:
Faster speeds for streaming, gaming and video conferencingOptimal performance across multiple connected devicesReliable connectivity for remote work, online learning and business operationsScalable connectivity solutions for businesses of all sizes “Reliable connectivity is essential for how people work, learn, get entertained and stay connected every day,” said Jim Holanda, CEO of Cable One, Sparklight’s parent company. “Our investments help ensure families and businesses across the communities we serve have access to the fast, dependable connectivity they need today, while continuing to strengthen network performance and reliability for the future.”
Sparklight’s investments also support the company’s suite of connectivity products and services, including:
Intelligent whole-home Wi-Fi powered by eero Wi-Fi 7 technologySparklight Mobile, a no-contract wireless service with 5G nationwide coverage and unlimited talk and text starting at $15/month when bundled with Sparklight home internetTech Assist, a U.S.-based support and protection service for connected home devices, smart TVs, gaming systems and more
To learn more about Sparklight’s residential and business services, visit www.sparklight.com and business.sparklight.com or follow the company on Facebook, Instagram and X.
About Sparklight
Sparklight is a leading broadband communications provider delivering exceptional service and enabling more than 1 million residential and business customers across 24 states to thrive and stay connected to what matters most. Through Sparklight®, the brand our customers know and trust, we’re not just shaping the future of connectivity – we’re transforming it with a commitment to innovation, reliability and customer experience at our core.
Our robust infrastructure and cutting-edge technology don’t just keep our customers connected; they help drive progress in education, business and everyday life. We’re dedicated to bridging the digital divide, empowering our communities and fostering a more connected world. When our customers choose Sparklight, they are choosing a team that is always working for them — one that believes in the relentless pursuit of reliability, because being a trusted neighbor isn’t just what we do — it’s who we are.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dbc37987-f656-4f1c-bccd-e980496248df
Sparklight Invests Nearly $1 Billion to Enhance Connectivity Across Its Footprint Sparklight Invests Nearly $1 Billion to Enhance Connectivity Across Its Footprint
Senator Markwayne Mullin (Republican-Oklahoma) recently sold shares of AutoZone, Inc. (NYSE: AZO). In a filing disclosed on March 10th, the Senator disclosed that they had sold between $50,001 and $100,000 in AutoZone stock on February 25th. Senator Markwayne Mullin also recently made the following trade(s): Sold $15,001 - $50,000 in shares of Intuit (NASDAQ: INTU) on 2/25/2026.
Senator Markwayne Mullin (Republican-Oklahoma) recently sold shares of Intuit Inc. (NASDAQ: INTU). In a filing disclosed on March 10th, the Senator disclosed that they had sold between $15,001 and $50,000 in Intuit stock on February 25th. Senator Markwayne Mullin also recently made the following trade(s): Sold $50,001 - $100,000 in shares of AutoZone (NYSE: AZO) on 2/25/2026.
Senator Markwayne Mullin (Republican-Oklahoma) recently bought shares of UnitedHealth Group Incorporated (NYSE: UNH). In a filing disclosed on March 10th, the Senator disclosed that they had bought between $50,001 and $100,000 in UnitedHealth Group stock on February 25th. Senator Markwayne Mullin also recently made the following trade(s): Sold $15,001 - $50,000 in shares of Intuit (NASDAQ: INTU)
JPMorgan Chase and Co. lifted its stake in shares of FirstCash Holdings, Inc. (NASDAQ: FCFS) by 96.0% in the third quarter, according to its most recent filing with the SEC. The fund owned 240,441 shares of the company's stock after acquiring an additional 117,788 shares during the period. JPMorgan Chase and Co. owned
Shares of FirstCash Holdings, Inc. (NASDAQ: FCFS - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the six brokerages that are covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and one has assigned a strong buy recommendation
FirstCash Holdings, Inc. (NASDAQ:FCFS – Get Free Report) reached a new 52-week high during mid-day trading on Friday . The company traded as high as $202.46 and last traded at $201.36, with a volume of 93183 shares trading hands. The stock had previously closed at $198.90.
Wall Street Analysts Forecast Growth A number of analysts have issued reports on the stock. Weiss Ratings reiterated a “buy (b)” rating on shares of FirstCash in a research note on Friday, March 27th. Zacks Research cut shares of FirstCash from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 2nd. Wall Street Zen cut shares of FirstCash from a “strong-buy” rating to a “buy” rating in a research note on Sunday, February 15th. Finally, Canaccord Genuity Group lifted their target price on shares of FirstCash from $217.00 to $240.00 and gave the company a “buy” rating in a research note on Friday, March 20th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, FirstCash currently has an average rating of “Moderate Buy” and an average target price of $183.25.
Read Our Latest Stock Report on FirstCash
FirstCash Price Performance The stock’s 50 day moving average price is $188.71 and its two-hundred day moving average price is $169.84. The company has a debt-to-equity ratio of 0.97, a current ratio of 4.55 and a quick ratio of 3.36. The firm has a market capitalization of $8.87 billion, a price-to-earnings ratio of 27.17 and a beta of 0.47.
FirstCash (NASDAQ:FCFS – Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The company reported $2.64 earnings per share for the quarter, topping analysts’ consensus estimates of $2.54 by $0.10. FirstCash had a net margin of 9.02% and a return on equity of 17.99%. The business had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.01 billion. During the same period in the previous year, the company earned $2.12 earnings per share. FirstCash’s revenue for the quarter was up 19.8% on a year-over-year basis. On average, equities research analysts anticipate that FirstCash Holdings, Inc. will post 7.7 EPS for the current year.
FirstCash Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, February 18th were paid a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Wednesday, February 18th. FirstCash’s payout ratio is presently 22.64%.
Insider Transactions at FirstCash In other news, CFO R Douglas Orr sold 2,000 shares of the business’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $182.99, for a total value of $365,980.00. Following the completion of the sale, the chief financial officer directly owned 36,734 shares in the company, valued at approximately $6,721,954.66. The trade was a 5.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Thomas Brent Stuart sold 10,000 shares of the business’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $182.53, for a total transaction of $1,825,300.00. Following the completion of the sale, the chief operating officer owned 150,846 shares of the company’s stock, valued at $27,533,920.38. The trade was a 6.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 26,500 shares of company stock worth $4,783,985. 2.93% of the stock is owned by insiders.
Institutional Trading of FirstCash Institutional investors and hedge funds have recently modified their holdings of the company. Villanova Investment Management Co LLC raised its stake in FirstCash by 0.4% during the 4th quarter. Villanova Investment Management Co LLC now owns 12,783 shares of the company’s stock valued at $2,037,000 after purchasing an additional 54 shares during the last quarter. State of Wyoming raised its stake in FirstCash by 4.3% during the 3rd quarter. State of Wyoming now owns 1,765 shares of the company’s stock valued at $280,000 after purchasing an additional 73 shares during the last quarter. Profund Advisors LLC raised its stake in FirstCash by 4.9% during the 3rd quarter. Profund Advisors LLC now owns 1,632 shares of the company’s stock valued at $259,000 after purchasing an additional 76 shares during the last quarter. Ascent Group LLC raised its stake in FirstCash by 6.0% during the 4th quarter. Ascent Group LLC now owns 1,423 shares of the company’s stock valued at $227,000 after purchasing an additional 81 shares during the last quarter. Finally, Northwestern Mutual Investment Management Company LLC raised its stake in FirstCash by 1.0% during the 3rd quarter. Northwestern Mutual Investment Management Company LLC now owns 8,703 shares of the company’s stock valued at $1,379,000 after purchasing an additional 85 shares during the last quarter. 80.30% of the stock is currently owned by institutional investors and hedge funds.
About FirstCash (Get Free Report)
FirstCash, Inc (NASDAQ: FCFS) is a leading integrated operator of pawn stores and provider of short-term consumer loan services in the United States and Mexico. Through its retail pawn outlets, FirstCash offers collateral-based loans secured by personal property, enabling customers to access liquidity without a credit history or traditional bank account. The company also purchases, trades and sells a broad range of secondhand merchandise, including electronics, jewelry and power tools, through its network of conveniently located stores.
In addition to its pawn-broking activities, FirstCash provides unsecured consumer loans designed to meet urgent cash needs.
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FirstCash Holdings, Inc. (NASDAQ:FCFS – Get Free Report) has received an average rating of “Buy” from the six analysts that are presently covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a hold rating, two have assigned a buy rating and two have given a strong buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $183.25.
Several equities analysts recently issued reports on FCFS shares. Wall Street Zen cut shares of FirstCash from a “strong-buy” rating to a “buy” rating in a research report on Sunday, February 15th. Weiss Ratings upgraded shares of FirstCash from a “buy (b)” rating to a “buy (a-)” rating in a research report on Friday, April 10th. Zacks Research lowered shares of FirstCash from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 2nd. Finally, Canaccord Genuity Group boosted their price objective on shares of FirstCash from $217.00 to $240.00 and gave the stock a “buy” rating in a research note on Friday, March 20th.
View Our Latest Stock Analysis on FirstCash
Insider Buying and Selling In related news, COO Thomas Brent Stuart sold 10,000 shares of the business’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $182.53, for a total transaction of $1,825,300.00. Following the sale, the chief operating officer owned 150,846 shares of the company’s stock, valued at $27,533,920.38. The trade was a 6.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Howard F. Hambleton sold 4,000 shares of the business’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $185.12, for a total transaction of $740,480.00. Following the sale, the insider directly owned 35,406 shares in the company, valued at $6,554,358.72. The trade was a 10.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 26,500 shares of company stock valued at $4,783,985 over the last quarter. Corporate insiders own 2.93% of the company’s stock.
Institutional Investors Weigh In On FirstCash Several hedge funds have recently bought and sold shares of FCFS. Westfield Capital Management Co. LP bought a new stake in FirstCash during the third quarter worth about $66,925,000. JPMorgan Chase & Co. grew its holdings in shares of FirstCash by 133.8% during the fourth quarter. JPMorgan Chase & Co. now owns 562,104 shares of the company’s stock valued at $89,588,000 after buying an additional 321,663 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of FirstCash by 36.4% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,169,281 shares of the company’s stock valued at $186,361,000 after buying an additional 312,132 shares during the last quarter. AQR Capital Management LLC grew its holdings in shares of FirstCash by 67.6% during the third quarter. AQR Capital Management LLC now owns 623,059 shares of the company’s stock valued at $97,503,000 after buying an additional 251,305 shares during the last quarter. Finally, Victory Capital Management Inc. grew its holdings in shares of FirstCash by 76.3% during the third quarter. Victory Capital Management Inc. now owns 534,571 shares of the company’s stock valued at $84,687,000 after buying an additional 231,379 shares during the last quarter. Institutional investors own 80.30% of the company’s stock.
FirstCash Price Performance Shares of NASDAQ FCFS opened at $206.77 on Friday. FirstCash has a 1 year low of $119.00 and a 1 year high of $210.18. The company has a debt-to-equity ratio of 0.97, a current ratio of 4.55 and a quick ratio of 3.36. The company’s 50-day moving average is $191.70 and its 200 day moving average is $171.51. The stock has a market capitalization of $9.06 billion, a P/E ratio of 27.87 and a beta of 0.47.
FirstCash (NASDAQ:FCFS – Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The company reported $2.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.54 by $0.10. FirstCash had a net margin of 9.02% and a return on equity of 17.99%. The company had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.01 billion. During the same quarter in the previous year, the company earned $2.12 earnings per share. FirstCash’s quarterly revenue was up 19.8% on a year-over-year basis. On average, sell-side analysts expect that FirstCash will post 7.7 earnings per share for the current year.
FirstCash Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, February 18th were paid a dividend of $0.42 per share. The ex-dividend date of this dividend was Wednesday, February 18th. This represents a $1.68 annualized dividend and a yield of 0.8%. FirstCash’s payout ratio is presently 22.64%.
FirstCash Company Profile (Get Free Report)
FirstCash, Inc (NASDAQ: FCFS) is a leading integrated operator of pawn stores and provider of short-term consumer loan services in the United States and Mexico. Through its retail pawn outlets, FirstCash offers collateral-based loans secured by personal property, enabling customers to access liquidity without a credit history or traditional bank account. The company also purchases, trades and sells a broad range of secondhand merchandise, including electronics, jewelry and power tools, through its network of conveniently located stores.
In addition to its pawn-broking activities, FirstCash provides unsecured consumer loans designed to meet urgent cash needs.
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FORT WORTH, Texas, April 23, 2026 (GLOBE NEWSWIRE) -- FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,300 retail pawn stores, today announced record revenue and earnings results for the three month period ended March 31, 2026. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.42 per share, which will be paid in May 2026.
Mr. Rick Wessel, chief executive officer, stated, “FirstCash is pleased to report its first quarter results highlighted by record revenue, net income and earnings per share. Consolidated revenues again exceeded $1 billion for the quarter, representing an increase of 26% over the first quarter of last year. Resulting net income and adjusted EBITDA both increased 29%, while fully diluted earnings per share increased an impressive 30%.
“Our tremendous first quarter results were driven by exceptionally strong performances in each of the three pawn segments. Pawn revenues in the U.S. were up 16% while Latin America was up 40% on a U.S. dollar basis and 23% in local currency. The recently acquired U.K. operations contributed meaningfully to the overall revenue and earnings results with an outstanding quarter as well. The earnings contribution margin in each pawn segment further improved, driven by pawn fee growth coupled with strong merchandise sales and margins.
“Most notably, same-store pawn receivables at the end of the first quarter increased an unprecedented 19% in the U.S., 30% in Latin America and 29% in the U.K. (all on a local currency basis), representing further acceleration in pawn demand since the start of the year. These trends point to significant further revenue momentum as we begin the second quarter, and accordingly, we are raising full year 2026 revenue guidance for each of our pawn segments.
“FirstCash’s store opening and acquisition activity remains strong with 340 locations added over the last twelve months, including eight pawn locations added in the first quarter. There continues to be a solid pipeline of opportunities across all markets for further expansion in 2026.
“Additionally, the strong first quarter operating results generated significant operating cash flows which we utilized to further invest in the business while also reducing our leverage ratio, repurchasing stock and paying the quarterly cash dividend,” concluded Mr. Wessel.
This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.
Three Months Ended March 31, As Reported (GAAP) Adjusted (Non-GAAP)In thousands, except per share amounts 2026 2025 2026 2025Revenue$1,051,651 $836,423 $1,051,651 $836,423Net income$107,702 $83,591 $119,048 $92,781Diluted earnings per share$2.43 $1.87 $2.69 $2.07EBITDA (non-GAAP measure)$210,945 $162,961 $210,631 $162,880Weighted-average diluted shares 44,248 44,789 44,248 44,789 Consolidated Operating Highlights
Diluted earnings per share for the first quarter increased 30% on both a GAAP basis and on an adjusted basis compared to the prior-year quarter.Net income for the first quarter totaled $108 million, a 29% increase over the prior-year quarter on a GAAP basis, while adjusted net income increased 28% compared to the prior-year quarter.Adjusted EBITDA for the first quarter increased 29% to $211 million compared to the prior-year quarter.Consolidated revenue for the first quarter increased 26% over the prior-year quarter while net revenues (gross profit) increased 28% compared to the prior-year quarter. Combined revenues from the Company’s pawn segments increased 40% in the first quarter over last year, while the total pawn segment income increased 60% over the same period.Consolidated assets at March 31, 2026 totaled a record $5.4 billion, including record pawn receivables of $851 million. This compares to assets of $4.4 billion and pawn receivables of $500 million a year ago.For the trailing twelve month period ended March 31, 2026 the Company reported: Revenues of $3.9 billionNet income of $354 million on a GAAP basis and adjusted net income of $416 millionAdjusted EBITDA of $746 millionOperating cash flows of $613 million and adjusted free cash flows (a non-GAAP measure) of $267 million
Pawn Store Locations and Merchant Partner Growth
During the first quarter, the Company added eight pawn locations, including four de novo stores in Latin America, three de novo stores in the U.K. and one acquired location in the U.S. Over the last twelve months, the Company has added 340 locations, which includes 24 U.S. locations, 26 in Latin America and 290 in the U.K.At March 31, 2026, the Company had 3,334 locations, comprised of 1,207 U.S. locations, 1,838 locations in Latin America and 289 U.K. locations.The Company’s real estate portfolio of owned pawn locations now totals 458 properties, of which 15 were acquired in the first quarter and 51 were acquired over the past 12 months.AFF had approximately 16,600 active retail and e-commerce point-of-sale merchant partner locations at March 31, 2026, representing a 14% increase compared to a year ago. U.S. Pawn Segment Operating Results
Total segment revenue increased 16% in the first quarter, reflecting especially strong same-store revenue growth coupled with contributions from the 2025 acquisitions.Segment pre-tax operating income increased 25% compared to the prior-year quarter. The resulting segment pre-tax operating margin increased to a record 29% for the first quarter of 2026 compared to 27% in the prior-year quarter.Pawn receivables increased 21% in total at March 31, 2026 compared to last year. Same-store pawn receivables increased 19% and are up 32% on a two-year stacked basis. This represented the eleventh consecutive quarter of double-digit same-store receivables growth.Pawn loan fees increased 14% in the first quarter while retail merchandise sales increased 13%, both compared to the prior-year quarter. On a same-store basis, pawn fees increased 13% and retail sales increased 9%.Retail sales margins improved to 44% for the first quarter of 2026 compared to 42% for the first quarter of 2025. Inventories aged greater than one year at March 31, 2026 remained low at 1.7% of total inventories and consistent with the prior year.
Latin America Pawn Segment Operating Results
Note: Certain growth rates below are calculated on a constant or local currency basis, a non-GAAP financial measure defined at the end of this release. The average U.S. dollar to Mexican peso exchange rate for the first quarter of 2026 was 17.6 dollar / peso, a favorable change of 14% versus the comparable prior-year period.
Total segment revenue in the first quarter of 2026 increased 40% on a U.S. dollar basis and 23% on a constant currency basis compared to the prior-year quarter.First quarter segment pre-tax operating income increased 62% on a U.S. dollar basis compared to last year, totaling a record $51 million, and increased 48% on a local currency basis. The resulting segment pre-tax operating margin increased to 20% for the first quarter of 2026 compared to 17% in the prior-year quarter.Pawn receivables, both in total and on a same-store basis, as of March 31, 2026, increased 45% on a U.S. dollar basis while increasing 30% on a constant currency basis compared to the prior year.Total and same-store pawn loan fees in the first quarter increased 42% on a U.S. dollar basis while both increased 23% on a constant currency basis compared to the prior-year quarter.Total and same-store retail merchandise sales in the first quarter increased 33% on a U.S. dollar basis compared to the prior-year quarter. On a constant currency basis, both total and same-store retail merchandise sales increased 15% in the first quarter compared to the prior-year quarter.Retail margins were 35% in both the first quarter of 2026 and 2025. Inventories aged greater than one year at March 31, 2026 remained extremely low at 1.3% and down sequentially from 1.4% at the end of 2025. U.K. Pawn Segment Operating Results
Total revenues in the first quarter were $102 million, with strong growth over the prior-year quarter (pre-acquisition) in both pawn fees and merchandise sales.Segment pre-tax operating income for the first quarter of 2026 was $39 million, resulting in a segment pre-tax operating margin of 39%.Pawn receivables at March 31, 2026 totaled $215 million, an increase of 29% on both a total and same-store local currency basis, compared to a year ago (pre-acquisition).
American First Finance (AFF) - Retail POS Payment Solutions Segment Operating Results
First quarter segment pre-tax operating income totaled $26 million. This represented an expected decrease compared to the first quarter of 2025, which included significant run-off revenues from certain merchant partner bankruptcies that occurred in late 2024.Gross transaction volume of lease and loan originations during the first quarter increased 3% compared to the prior-year quarter, which was a sequential improvement compared to the year-over-year decrease of 3% during the fourth quarter of 2025. Gross revenues for the first quarter decreased 11%, primarily due to the merchant bankruptcies in late 2024.The combined average monthly net charge-off rate for lease and finance products remained within our targeted range at 5.6% for the first quarter of 2026, relatively consistent with the 5.4% in the first quarter of 2025. Cash Flow and Liquidity
Consolidated operating cash flows for the twelve month period ended March 31, 2026 totaled $613 million, an increase of 13% compared to the same prior-year period, driven by significant contributions from each of the Company’s four business segments.Adjusted free cash flows, which includes net fundings/repayments of pawn loans and finance receivables, decreased 1% to $267 million in the twelve month period ended March 31, 2026 compared to the same prior-year period. The decrease was primarily due to the extraordinarily strong growth in new pawn loans made during the quarter. The operating cash flows helped fund significant growth in earning assets, continued investments in the pawn store platform and shareholder returns over the past twelve months: A total of 309 pawn stores were acquired for a combined purchase price of $450 million.Excluding earning assets obtained through acquisitions over the past twelve months, pawn earning assets (pawn receivables and inventories) increased $277 million compared to last year.31 de novo pawn stores were opened with a combined investment of approximately $12 million in fixed assets and working capital.Real estate purchases totaled $86 million as the Company purchased the underlying real estate at 51 of its existing pawn stores, bringing the number of Company-owned properties to 458 locations.Shareholder returns comprised of stock repurchases and cash dividends totaled $178 million. Based on trailing twelve month actual results, the Company’s net debt to adjusted EBITDA ratio was 2.9x at March 31, 2026. Including the estimated pro forma EBITDA contributions from acquisitions and other lender permitted adjustments over the past 12 months, the ratio of net debt to adjusted EBITDA at March 31, 2026 was 2.6x, which compares favorably to the same ratio six months ago (post the acquisition of H&T) of 2.9x.
Shareholder Returns
The Board of Directors declared a $0.42 per share second quarter cash dividend, which will be paid on May 29, 2026 to stockholders of record as of May 15, 2026. This represents an annualized dividend of $1.68 per share. Any future dividends are subject to approval by the Company’s Board of Directors.During the first quarter, the Company repurchased 261,000 shares of common stock at an average price of $191.79 per share for a total cost of $50 million under the $150 million stock repurchase program authorized in October 2025.Under its current authorization, the Company has $100 million available for future share repurchases, subject to expected liquidity, acquisition and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.Over the past twelve months, the Company has repurchased 648,000 shares of common stock at an average price of $162.60 per share for a total cost of $105 million and paid out $72 million in cash dividends, representing a payout ratio of approximately 50% of net income over the same period.The Company generated a 16% return on equity and a 7% return on assets for the twelve months ended March 31, 2026. Using adjusted net income for the twelve months ended March 31, 2026, the adjusted return on equity was 19% while the adjusted return on assets was 8%.
2026 Outlook
The outlook for the remainder of 2026 continues to be highly positive. The Company is raising its expectations for year-over-year growth in pawn segment revenues, driven by the continued growth in same-store pawn receivables and better than anticipated revenue contributions from stores acquired in 2025.
Pawn Operations:
Pawn operations are expected to remain the primary earnings driver as the Company expects segment income from the combined U.S., Latin America and U.K. pawn segments to be almost 90% of total net revenue and segment level pre-tax income for 2026.
U.S. Pawn
Same-store pawn receivables, the leading indicator of future revenues, at March 31, 2026 were up 19% compared to a year ago, with April balances presently up over 20%. While the Company will lap its 2025 acquisitions of 23 stores over the course of this year, the Company now expects mid-teen revenue growth from pawn fees in 2026 compared to the previous forecast for low double-digit growth.The Company expects retail merchandise sales to grow 10% or more in 2026 and will continue to target retail margins at approximately 42%. Previous guidance was for high single digit retail sales growth. Additionally, the Company continues to anticipate improved year-over-year scrap jewelry sales and margins.Store operating expenses are projected to grow at a high single-digit range in 2026, primarily due to increased variable compensation expense and the significant 2025 store additions.
Latin America Pawn
Same-store pawn receivables at March 31, 2026 were up 30% on a local currency basis with continued growth in April. While the Company assumes these comps could moderate over the course of 2026, it still expects a high-teen growth rate in pawn fees (compared to the previous guidance in the mid-teens), assuming a similar exchange rate to last year.The Company is now expecting retail merchandise sales to grow at a rate in the mid-teens over 2025 with consistent retail margins at approximately 35%, and like the U.S., expects year-over-year improvement in scrap jewelry volume and margins. The previous retail sales forecast was for high-single digit growth.Combined with increased store counts and increased variable compensation expense, operating expenses are expected to increase in a range of 10% to 12% on a U.S. dollar basis.
U.K. Pawn
Pawn receivables at March 31, 2026 were up 29% compared to a year ago, with April balances trending similarly. Based on first quarter performance and increased full year revenue projections, 2026 segment income (before administrative expenses, interest expense and taxes) is now expected to be in a range of $125 million to $135 million assuming the current GBP exchange rate. Previous guidance was $115 million to $125 million.
Retail POS Payment Solutions (AFF) Operations:
Given continued softness in furniture and other large-ticket retail sales, gross transaction volumes for lease and loan originations for 2026 are currently forecast to increase in a flat to low single digit range compared to 2025.As expected, full year 2026 revenues are forecast to decrease in a mid-to-high single digit range compared to the prior year due to lower comparable leased merchandise balances at the beginning of the current year compared to last year.Resulting net revenue (after depreciation of leased merchandise and lease and loan loss provisioning) is expected to decrease in a range of 15% to 20% for the full year due primarily to reduced LTO net revenue from legacy furniture merchant partners.
Other Expenses, Tax Rates and Currency:
Quarterly corporate administrative expenses for the remainder of 2026 are expected to remain at a run rate similar to the first quarter of 2026.Interest expense is expected to increase for full year 2026 in a range of 10% to 15% over 2025 assuming current interest rates on the Company’s floating rate debt.The full year 2026 consolidated effective income tax rate under current tax codes in the U.S., Latin America and the U.K. is expected to range from 25.5% to 26.5% of net income.Each full point change in the exchange rate of the Mexican peso is projected to have an annual earnings impact of approximately $0.10 to $0.12 per share. A comparable percentage rate change in the exchange rate for the British pound sterling would have an annual earnings impact of approximately $0.07 to $0.09 per share. Additional Commentary and Analysis
Mr. Wessel further commented on FirstCash’s first quarter results and the outlook for the remainder of 2026, “With another quarter of outstanding results, we continue to validate FirstCash’s long-term commitment to its core pawn operations and strategies for growing its global presence. We believe pawnshops are more relevant than ever given their dual role as both a customer-friendly lender and a vibrant second-hand marketplace. These trends, coupled with our focus on customer service, continue to broaden our customer base.
“Our legacy U.S. business continues to perform well, driven by exceptionally strong same-store performance coupled with highly accretive contributions from recently acquired stores. Despite larger than average U.S. tax refunds, lending trends reflected lower than normal first quarter pawn loan paydowns. Retail sales were stronger than expected as well, reinforcing our relevance as a deep-value retailer which is minimally impacted by tariffs. Additionally, we attribute some of the growth to the fact that almost 80% of our U.S. store base is located in the high-growth regions of Texas, the Southeast and Mountain West, which we believe positions us well to enjoy expected long-term demographic tailwinds.
“Latin America produced an even greater first quarter growth rate in pawn revenues, which we attribute to continued inflationary pressures along with the apparent impacts of reverse-migration and reduced remittance volumes from the U.S. to Latin America. Combined with the similarly strong growth of gross profits from merchandise sales and favorable currency trends, Latin America generated a 62% increase in U.S. dollar segment income.
“Pawn growth metrics in the U.K. were outstanding as well, resulting in strong profitability for H&T in the first quarter that was well ahead of our original expectations. The integration of H&T is progressing well, with the migration of these stores to FirstCash’s proprietary pawn point-of-sale technology platform now underway, which we anticipate completing over the next few months. We believe the integration of the point-of-sale system and other back office platforms will improve customer service, enable product enhancements and generate additional operating synergies.
“Based on the extremely strong first quarter results and accelerating pawn loan demand across all markets, we begin the second quarter with tremendous momentum. For each pawn segment, we have increased our 2026 guidance for expected pawn fees and merchandise sales. Our inventories remain well positioned to support the increased sales expectations with retail and scrap jewelry margins continuing to trend at or above our targeted ranges.
“From a longer-term strategic perspective, we remain focused on identifying opportunities to expand pawn operations in the U.S., Latin America and the U.K. There is a solid pipeline of planned new store openings for 2026 coupled with further acquisition opportunities across all markets. We believe that our demonstrated ability to source, finance and close accretive acquisitions quickly, followed by rapid integration into our operating model, is a meaningful competitive advantage.
“The AFF business segment continues to perform profitably as well, despite ongoing weakness in the retail furniture industry. AFF’s increasing penetration into other retail verticals is driving increased door counts and greater merchant diversification. We are encouraged by the increase in first quarter gross transaction volumes over last year. At the same time, portfolio performance metrics remain steady and within our target ranges as we continue to focus on prudent underwriting and merchant quality.
“Each of our pawn segments and AFF continues to generate robust cash flows which support the strong growth in earning assets and continued investments in store expansion. Even with the significant volume of acquisitions over the past 12 months, which includes the all-cash acquisition of H&T last August, our proforma leverage ratio remains modest and has declined as expected over the past several months.
“In summary, we remain focused on operational excellence and customer service, while further creating long-term shareholder value through meaningful growth and consistent shareholder returns,” concluded Mr. Wessel.
About FirstCash
FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash operates more than 3,300 pawn stores in the U.S., Latin America and the U.K. Most of the stores 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 operations currently account for over 90% of net revenue, with the remainder provided by its wholly owned subsidiary, AFF, a leading provider of customer payment solutions at the point-of-sale for retailers of 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, http://www.americanfirstfinance.com and http://www.handt.co.uk.
Forward-Looking Information
This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2026. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.
While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors and risks may include, without limitation, risks related to the extensive regulatory environment in which the Company operates, including uncertainty involving the present regulatory environment in the jurisdictions in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States, Latin America and the United Kingdom, including as a result of inflation, elevated interest rates, increased energy costs and trade policy, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso and British pound sterling; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; risks related to the Company’s ability to prevent cyber attacks, other cybersecurity incidents, security breaches or other disruptions to its information technology systems; risks related to the Company’s ability to develop, operate and adapt its information technology infrastructure suitable for the nature of its business and to successfully transition acquired businesses to its information technology platform; contraction in sales activity or store closures at merchant partners of the Company’s retail point-of-sale (“POS”) payment solutions business; the ability of the Company’s retail POS payment solutions business to continue to grow its base of merchant partners; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part I, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
FIRSTCASH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands) Three Months Ended March 31, 2026 2025 Revenue: Retail merchandise sales$464,834 $371,056 Pawn loan fees 266,698 191,871 Leased merchandise income 130,187 156,918 Interest and fees on retail finance products 74,335 73,413 Wholesale scrap jewelry sales 112,481 43,165 Other revenue 3,116 — Total revenue 1,051,651 836,423 Cost of revenue: Cost of retail merchandise sold 278,049 224,124 Depreciation of leased merchandise 81,059 88,819 Provision for lease losses 29,744 27,562 Provision for loan losses 42,844 36,360 Cost of wholesale scrap jewelry sold 76,727 35,355 Other cost of revenue 846 — Total cost of revenue 509,269 412,220 Net revenue 542,382 424,203 Expenses and other income: Operating expenses 269,429 214,586 Administrative expenses 65,778 48,523 Depreciation and amortization 31,516 25,502 Interest expense 34,528 27,471 Interest income (227) (1,229)Gain on foreign exchange (1,102) (14)Merger and acquisition expenses 865 462 Other income, net (3,533) (2,315)Total expenses and other income 397,254 312,986 Income before income taxes 145,128 111,217 Provision for income taxes 37,426 27,626 Net income$107,702 $83,591 FIRSTCASH HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands) March 31, December 31, 2026 2025 2025 ASSETS Cash and cash equivalents$130,739 $146,034 $125,197 Accounts receivable, net 117,345 71,166 115,854 Pawn loans 851,125 499,710 831,497 Finance receivables, net 139,296 145,079 150,274 Inventories 538,791 334,700 487,232 Leased merchandise, net 97,248 103,612 114,283 Prepaid expenses and other current assets 30,689 26,033 32,131 Total current assets 1,905,233 1,326,334 1,856,468 Property and equipment, net 841,570 724,213 808,050 Operating lease right of use asset 362,128 329,183 365,621 Goodwill 2,020,527 1,815,139 2,023,426 Intangible assets, net 214,987 216,736 231,140 Other assets 9,758 9,952 9,796 Deferred tax assets, net 7,119 4,720 6,262 Total assets$5,361,322 $4,426,277 $5,300,763 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued liabilities$206,834 $129,137 $212,615 Customer deposits and prepayments 88,033 76,211 83,908 Lease liability, current 104,801 96,539 111,291 Total current liabilities 399,668 301,887 407,814 Revolving unsecured credit facility 573,000 175,000 559,000 Other long-term debt 1,681,120 1,532,099 1,649,434 Deferred tax liabilities, net 157,479 129,936 158,819 Lease liability, non-current 251,975 228,995 248,934 Total liabilities 3,063,242 2,367,917 3,024,001 Stockholders’ equity: Common stock 575 575 575 Additional paid-in capital 1,755,756 1,755,591 1,771,379 Retained earnings 1,759,830 1,477,730 1,670,583 Accumulated other comprehensive loss (76,399) (130,540) (64,835)Common stock held in treasury, at cost (1,141,682) (1,044,996) (1,100,940)Total stockholders’ equity 2,298,080 2,058,360 2,276,762 Total liabilities and stockholders’ equity$5,361,322 $4,426,277 $5,300,763 FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS
(unaudited)
The Company organizes its operations into four reportable segments as follows:
United States pawn (“U.S. pawn”)Latin America pawn (“LatAm pawn”)United Kingdom pawn (“U.K. pawn”)Retail POS payment solutions (American First Finance or “AFF”) Operating expenses of the three pawn segments include salary and benefit expenses of store-level employees, occupancy costs, bank and other treasury fees, security, insurance, utilities, supplies and other costs incurred by the pawn stores. Operating expenses of the AFF segment include salary and benefit expenses of operations-focused departments, payment processing charges, data analytics and decisioning costs, information technology costs, advertising costs and other operational costs incurred by AFF.
Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, gain on foreign exchange, merger and acquisition expenses, and other income, net, are presented on a consolidated basis and are not allocated between the segments. Intersegment transactions related to AFF’s LTO payment solution product offered in U.S. pawn stores are eliminated from consolidated totals.
The Company completed the acquisition of H&T, the leading pawn operator in the United Kingdom, on August 14, 2025, the date which the balance sheet and operating results of H&T were included in the Company’s consolidated financial results.
Pawn Operating Metrics
(dollars in thousands, except as otherwise noted)
As of March 31, 2026 U.S.
Pawn LatAm
Pawn U.K.
Pawn Total
PawnEarning assets: Pawn loans$441,628 $194,116 $215,381 $851,125 Inventories 311,579 144,013 83,199 538,791 $753,207 $338,129 $298,580 $1,389,916 Average outstanding pawn loan amount (in ones)$328 $115 $854 $260 Composition of pawn collateral: Jewelry75% 51% 99% 76%General merchandise25% 49% 1% 24% 100% 100% 100% 100% Composition of inventories: Jewelry66% 50% 99% 67%General merchandise34% 50% 1% 33% 100% 100% 100% 100% Percentage of inventory aged greater than one year1.7% 1.3% 10.2% 2.9% Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)2.8 times 3.9 times 2.4 times 3.0 times As of March 31, 2025 U.S.
Pawn LatAm
Pawn U.K.
Pawn Total
PawnEarning assets: Pawn loans$365,972 $133,738 $— $499,710 Inventories 246,237 88,463 — 334,700 $612,209 $222,201 $— $834,410 Average outstanding pawn loan amount (in ones)$289 $86 $— $177 Composition of pawn collateral: Jewelry73% 42% —% 64%General merchandise27% 58% —% 36% 100% 100% —% 100% Composition of inventories: Jewelry61% 38% —% 55%General merchandise39% 62% —% 45% 100% 100% —% 100% Percentage of inventory aged greater than one year1.7% 1.5% —% 1.7% Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)2.8 times 4.2 times — 3.2 times FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS
(unaudited)
Retail POS Payment Operating Metrics
(dollars in thousands)
Three Months Ended March 31, 2026 2025Gross transaction volume: Leased merchandise$96,702 $94,305Finance receivables(1) 145,477 141,262Total gross transaction volume$242,179 $235,567 (1) During the third quarter of 2025, AFF began assisting certain customers in applying for a direct-to-consumer unsecured installment loan that is underwritten and fully retained by AFF’s bank partner (“OBS Loans”). OBS Loans are not reflected on the Company’s balance sheet as a finance receivable. For the three months ended March 31, 2026, gross transaction volume includes $14.4 million of OBS Loans originated by AFF’s bank partner through the assistance of AFF.
As of March 31,Earning assets: 2026 2025 Leased merchandise, net: Leased merchandise, before allowance for lease losses$158,542 $172,886 Less allowance for lease losses (61,248) (69,077)Leased merchandise, net$97,294 $103,809 Finance receivables, net: Finance receivables, before allowance for loan losses(1)$243,867 $263,421 Less allowance for loan losses (104,571) (118,342)Finance receivables, net$139,296 $145,079 (1) Does not include $32.9 million of outstanding OBS Loans held by AFF’s bank partner as of March 31, 2026. Combined finance receivables, before allowance for loan losses, and OBS Loans totaled $276.8 million as of March 31, 2026.
Three Months Ended March 31, 2026 2025 Leased merchandise portfolio metrics: Provision rate(1)31.0% 29.3%Average monthly net charge-off rate(2)6.6% 6.8%Delinquency rate(3)24.3% 22.6% Finance receivables portfolio metrics: Provision rate(1)29.5% 25.7%Average monthly net charge-off rate(2)4.9% 4.4%Delinquency rate(3)20.5% 19.3%
(1) Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
(2) Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
(3) Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).
FIRSTCASH HOLDINGS, INC.
PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS
Pawn Operations
As of March 31, 2026, the Company operated 3,334 pawn store locations composed of 1,207 stores in 29 U.S. states and the District of Columbia, 1,733 stores in 32 states in Mexico, 75 stores in Guatemala, 18 stores in El Salvador, 12 stores in Colombia and 289 stores in the U.K.
The following table details pawn store count activity:
Three Months Ended March 31, 2026 U.S. LatAm U.K. TotalTotal locations, beginning of period1,207 1,837 286 3,330 New locations opened— 4 3 7 Locations acquired1 — — 1 Consolidation of existing pawn locations(1)(1) (3) — (4)Total locations, end of period1,207 1,838 289 3,334
(1) Store consolidations, which include certain acquired locations that have been combined with overlapping stores, represent closings for which the Company expects to maintain a significant portion of the customer base in the consolidated location.
Retail POS Payment Solutions
As of March 31, 2026, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 16,600 active retail merchant partner locations. This compares to the active door count of approximately 14,500 locations at March 31, 2025.
FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(unaudited)
The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.
The Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses, amortization of acquired intangible assets and certain other income and expenses. The Company does not consider these items to be related to the organic operations of the Company’s businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the Company. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.
FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(unaudited)
Adjusted Net Income and Adjusted Diluted Earnings Per Share
Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.
The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):
Trailing Twelve Three Months Ended Months Ended March 31, March 31, 2026 2025 2026 2025 In Thousands In Thousands In Thousands In ThousandsNet income, as reported$107,702 $83,591 $354,486 $281,038Adjustments, net of tax: Merger and acquisition expenses 646 354 12,563 1,603Amortization of acquired intangible assets 11,554 9,258 43,351 37,974CFPB litigation settlement — — 9,390 —Other (income) expense, net (854) (422) (3,381) 4,657Adjusted net income$119,048 $92,781 $416,409 $325,272 Three Months Ended March 31, 2026 2025 Per Share Per ShareDiluted earnings per share, as reported$2.43 $1.87 Adjustments, net of tax: Merger and acquisition expenses 0.02 — Amortization of acquired intangible assets 0.26 0.21 Other income, net (0.02) (0.01)Adjusted diluted earnings per share$2.69 $2.07 FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(unaudited)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA
The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):
Trailing Twelve Three Months Ended Months Ended March 31, March 31, 2026 2025 2026 2025 Net income$107,702 $83,591 $354,486 $281,038 Income taxes 37,426 27,626 126,988 91,070 Depreciation and amortization 31,516 25,502 117,820 104,416 Interest expense 34,528 27,471 128,350 107,279 Interest income (227) (1,229) (1,933) (2,421)EBITDA 210,945 162,961 725,711 581,382 Adjustments: Merger and acquisition expenses 865 462 14,772 2,093 CFPB litigation settlement — — 11,000 — Other (income) expense, net (1,179) (543) (5,343) 6,250 Adjusted EBITDA$210,631 $162,880 $746,140 $589,725 FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(unaudited)
Free Cash Flow and Adjusted Free Cash Flow
For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.
Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):
Trailing Twelve Three Months Ended Months Ended March 31, March 31, 2026 2025 2026 2025 Cash flow from operating activities$153,628 $126,640 $612,930 $544,066 Cash flow from certain investing activities: Pawn loans made (661,711) (422,375) (2,333,564) (1,899,202)Pawn loans repaid 403,654 273,880 1,326,812 1,081,973 Recovery of pawn loan principal through sale of forfeited collateral 211,478 167,935 802,876 739,521 Investments in finance receivables (102,568) (114,493) (428,651) (455,072)Proceeds from finance receivables 87,642 93,927 335,987 310,503 Purchases of furniture, fixtures, equipment and improvements (20,116) (12,914) (62,108) (54,732)Free cash flow 72,007 112,600 254,282 267,057 Merger and acquisition expenses paid, net of tax benefit 646 354 12,563 1,603 Adjusted free cash flow$72,653 $112,954 $266,845 $268,660 FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(unaudited)
Adjusted Return on Equity and Adjusted Return on Assets
Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.
Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):
Trailing Twelve Months Ended March 31, 2026Adjusted net income(1)$416,409 Average stockholders’ equity (average of five most recent quarter-end balances)$2,194,603 Adjusted return on equity (trailing twelve months adjusted net income divided by average equity)19% Average total assets (average of five most recent quarter-end balances)$4,956,985 Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets)8%
(1) See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.
Constant Currency Results
The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America and the U.K., which are transacted in local currencies in Mexico, Guatemala, Colombia and the U.K. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.
The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America and the U.K., consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons.
FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(unaudited)
Latin America Pawn Segment Constant Currency Results
The following table presents operating results for the Latin America pawn segment using the exchange rate from the prior-year comparable period (in thousands):
Three Months Ended March 31, 2026 Currency Constant Currency Exchange Rate Basis U.S. Dollar Basis Fluctuations (Non-GAAP)Revenue: Retail merchandise sales$159,841 $(21,208) $138,633Pawn loan fees 76,646 (10,193) 66,453Wholesale scrap jewelry sales 20,632 — 20,632Total revenue 257,119 (31,401) 225,718 Cost of revenue: Cost of retail merchandise sold 104,066 (13,740) 90,326Cost of wholesale scrap jewelry sold 16,860 (2,283) 14,577Total cost of revenue 120,926 (16,023) 104,903 Net revenue 136,193 (15,378) 120,815 Segment expenses: Operating expenses 80,727 (10,432) 70,295Depreciation 4,585 (575) 4,010Total segment expenses 85,312 (11,007) 74,305 Segment pre-tax operating income$50,881 $(4,371) $46,510 The following table presents earning assets for the Latin America pawn segment using the exchange rate from the prior-year comparable period (in thousands):
As of March 31, 2026 Currency Constant Currency Exchange Rate Basis U.S. Dollar Basis Fluctuations (Non-GAAP)Earning assets: Pawn loans$194,116 $(20,386) $173,730Inventories 144,013 (15,164) 128,849 $338,129 $(35,550) $302,579 Exchange Rates for the Mexican Peso, Guatemalan Quetzal, Colombian Peso and British Pound Sterling
March 31, Favorable / 2026 2025 (Unfavorable)U.S. dollar / Mexican peso exchange rate: End-of-period18.1 20.3 11% Three months ended17.6 20.4 14% U.S. dollar / Guatemalan quetzal exchange rate: End-of-period7.6 7.7 1% Three months ended7.7 7.7 —% U.S. dollar / Colombian peso exchange rate: End-of-period3,670 4,193 12% Three months ended3,699 4,191 12% British pound sterling / U.S. dollar exchange rate: End-of-period1.32 1.29 2% Three months ended1.35 1.26 7% For further information, please contact:
Gar Jackson
Global IR Group
Phone: (817) 886-6998
Email: [email protected]
Doug Orr, Executive Vice President and Chief Financial Officer
Phone: (817) 258-2650
Email: [email protected]
Website: investors.firstcash.com
Firstcash Holdings Inc (NASDAQ:FCFS) reported upbeat earnings for the first quarter on Thursday.
The company posted quarterly earnings of $2.69 per share which beat the analyst consensus estimate of $2.31 per share. The company reported quarterly sales of $1.052 billion which beat the analyst consensus estimate of $1.003 billion.
Mr. Rick Wessel, chief executive officer, said, “FirstCash is pleased to report its first quarter results highlighted by record revenue, net income and earnings per share. Consolidated revenues again exceeded $1 billion for the quarter, representing an increase of 26% over the first quarter of last year. Resulting net income and adjusted EBITDA both increased 29%, while fully diluted earnings per share increased an impressive 30%.”
FirstCash shares gained 4.1% to trade at $220.98 on Friday.
These analysts made changes to their price targets on FirstCash following earnings announcement.
Canaccord Genuity analyst Brian McNamara maintained FirstCash with a Buy and raised the price target from $242 to $252. TD Cowen analyst Moshe Orenbuch maintained the stock with a Buy and raised the price target from $205 to $235. Considering buying FCFS stock? Here’s what analysts think:
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FORT WORTH, Texas, April 27, 2026 (GLOBE NEWSWIRE) -- FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS) today announced that the Company’s wholly-owned subsidiary, FirstCash, Inc. (the “Issuer”), has commenced an offering through a private placement, subject to market and other conditions, of $600,000,000 in aggregate principal amount of senior notes due 2034 (the “Notes”). The Notes will be unsecured senior obligations of the Issuer and will be guaranteed by FirstCash and its domestic subsidiaries that guarantee its revolving unsecured credit facility and existing senior unsecured notes.
FirstCash intends to use the proceeds from the offering to repay a portion of FirstCash’s outstanding borrowings under its credit facilities in order to provide additional liquidity to fund future growth, after payment of fees and expenses related to the offering.
The Notes are being offered in a private placement, solely to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or outside the United States to persons other than “U.S. persons” in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
This notice does not constitute an offer to sell the Notes, nor a solicitation of an offer to purchase the Notes, and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offering, solicitation or sale would be unlawful.
Forward-Looking Information
This release contains forward-looking statements, including statements about the Notes offering and the intended use of the net proceeds thereof. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.
These forward-looking statements are made to provide the public with management’s current expectations with regard to the Notes offering and the intended use of the net proceeds thereof. While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors and risks may include, without limitation, the Company’s ability to consummate the offering of the Notes; risks related to the extensive regulatory environment in which the Company operates, including uncertainty involving the present regulatory environment in the jurisdictions in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own and retail finance products, labor shortages and increased labor costs; a deterioration in the economic conditions in the United States, Latin America and the United Kingdom, including as a result of inflation, elevated interest rates, increased energy costs and trade policy, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso and British pound sterling; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; risks related to the Company’s ability to prevent cyber attacks, other cybersecurity incidents, security breaches or other disruptions to its information technology systems; risks related to the Company’s ability to develop, operate and adapt its information technology infrastructure suitable for the nature of its business and to successfully transition acquired businesses to its information technology platform; contraction in sales activity or store closures at merchant partners of the Company’s retail point-of-sale (“POS”) payment solutions business; the ability of the Company’s retail POS payment solutions business to continue to grow its base of merchant partners; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part I, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
About FirstCash
FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash operates more than 3,300 pawn stores in the U.S., Latin America and the U.K. Most of the stores 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 operations currently account for over 90% of net revenue, with the remainder provided by its wholly owned subsidiary, AFF, a leading provider of customer payment solutions at the point-of-sale for retailers of 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,
http://www.americanfirstfinance.com and
http://www.handt.co.uk.
For further information, please contact:
Gar Jackson
Global IR Group
Phone: (817) 886-6998Email: [email protected] Doug Orr, Executive Vice President and Chief Financial Officer
Phone:(817) 258-2650Email: [email protected]:investors.firstcash.com
For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is FirstCash Holdings (FCFS - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
FirstCash Holdings is a member of our Business Services group, which includes 234 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. FirstCash Holdings is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FCFS' full-year earnings has moved 8.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that FCFS has returned about 36.4% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -10.4% on a year-to-date basis. This means that FirstCash Holdings is outperforming the sector as a whole this year.
Teads Holding Co. (TEAD - Free Report) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.7%.
Over the past three months, Teads Holding Co.'s consensus EPS estimate for the current year has increased 3.2%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, FirstCash Holdings belongs to the Financial Transaction Services industry, which includes 36 individual stocks and currently sits at #90 in the Zacks Industry Rank. This group has lost an average of 16.6% so far this year, so FCFS is performing better in this area.
In contrast, Teads Holding Co. falls under the Advertising and Marketing industry. Currently, this industry has 15 stocks and is ranked #43. Since the beginning of the year, the industry has moved -11.2%.
Investors interested in the Business Services sector may want to keep a close eye on FirstCash Holdings and Teads Holding Co. as they attempt to continue their solid performance.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at FirstCash Holdings (FCFS - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. FirstCash Holdings currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for FCFS that show why this pawn store shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For FCFS, shares are up 5.91% over the past week while the Zacks Financial Transaction Services industry is down 1.82% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.46% compares favorably with the industry's 7.94% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of FirstCash Holdings have risen 26.59%, and are up 63.81% in the last year. In comparison, the S&P 500 has only moved 3.1% and 31.34%, respectively.
Investors should also take note of FCFS's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now FCFS is averaging 367,663 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with FCFS.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost FCFS's consensus estimate, increasing from $10.68 to $11.30 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that FCFS is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep FirstCash Holdings on your short list.
FORT WORTH, Texas, April 28, 2026 (GLOBE NEWSWIRE) -- FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS) today announced that the Company’s wholly-owned subsidiary, FirstCash, Inc. (the “Issuer”), has upsized and priced its previously announced private offering of $750,000,000 in aggregate principal amount of senior notes due 2034 (the “Notes”), representing an increase of $150,000,000 in aggregate principal amount from the previously announced proposed offering size. The Notes will pay interest semi-annually at a rate of 6.125% per annum payable on May 1 and November 1 of each year, beginning on November 1, 2026.
The Notes will be unsecured senior obligations of the Issuer and will be guaranteed by FirstCash and its domestic subsidiaries that guarantee its revolving unsecured credit facility and existing senior unsecured notes. The offering of the Notes is expected to close on May 1, 2026, subject to the satisfaction of customary closing conditions.
FirstCash intends to use the proceeds from the offering to repay FirstCash’s existing indebtedness in order to provide additional liquidity to fund future growth and for general corporate purposes, after payment of fees and expenses related to the offering.
The Notes are being offered in a private placement, solely to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or outside the United States to persons other than “U.S. persons” in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
This notice does not constitute an offer to sell the Notes, nor a solicitation of an offer to purchase the Notes, and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offering, solicitation or sale would be unlawful.
Forward-Looking Information
This release contains forward-looking statements, including statements about the Notes offering and the intended use of the net proceeds thereof. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.
These forward-looking statements are made to provide the public with management’s current expectations with regard to the Notes offering and the intended use of the net proceeds thereof. While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors and risks may include, without limitation, the Company’s ability to consummate the offering of the Notes; risks related to the extensive regulatory environment in which the Company operates, including uncertainty involving the present regulatory environment in the jurisdictions in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own and retail finance products, labor shortages and increased labor costs; a deterioration in the economic conditions in the United States, Latin America and the United Kingdom, including as a result of inflation, elevated interest rates, increased energy costs and trade policy, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso and British pound sterling; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; risks related to the Company’s ability to prevent cyber attacks, other cybersecurity incidents, security breaches or other disruptions to its information technology systems; risks related to the Company’s ability to develop, operate and adapt its information technology infrastructure suitable for the nature of its business and to successfully transition acquired businesses to its information technology platform; contraction in sales activity or store closures at merchant partners of the Company’s retail point-of-sale (“POS”) payment solutions business; the ability of the Company’s retail POS payment solutions business to continue to grow its base of merchant partners; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part I, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
About FirstCash
FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash operates more than 3,300 pawn stores in the U.S., Latin America and the U.K. Most of the stores 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 operations currently account for over 90% of net revenue, with the remainder provided by its wholly owned subsidiary, AFF, a leading provider of customer payment solutions at the point-of-sale for retailers of 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, http://www.americanfirstfinance.com and http://www.handt.co.uk.
For further information, please contact:Gar Jackson Global IR Group Phone:(817) 886-6998Email:[email protected] Doug Orr, Executive Vice President and Chief Financial Officer
Phone:(817) 258-2650Email:[email protected]:investors.firstcash.com
Shares of FirstCash Holdings (FCFS - Free Report) have been strong performers lately, with the stock up 13.1% over the past month. The stock hit a new 52-week high of $230.72 in the previous session. FirstCash has gained 41.1% since the start of the year compared to the -10.1% gain for the Zacks Business Services sector and the -15.9% return for the Zacks Financial Transaction Services industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 23, 2026, FirstCash reported EPS of $2.69 versus consensus estimate of -$999900.
Valuation MetricsWhile FirstCash has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
FirstCash has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 19.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 7.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, FirstCash currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if FirstCash passes the test. Thus, it seems as though FirstCash shares could have potential in the weeks and months to come.
How Does FCFS Stack Up to the Competition?Shares of FCFS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Sezzle Inc. (SEZL - Free Report) . SEZL has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Sezzle Inc. beat our consensus estimate by 15.32%, and for the current fiscal year, SEZL is expected to post earnings of $4.98 per share on revenue of $573.05 million.
Shares of Sezzle Inc. have gained 44.4% over the past month, and currently trade at a forward P/E of 20.03X and a P/CF of 26.17X.
The Financial Transaction Services industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FCFS and SEZL, even beyond their own solid fundamental situation.
Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has FirstCash Holdings (FCFS - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
FirstCash Holdings is one of 233 individual stocks in the Business Services sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. FirstCash Holdings is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for FCFS' full-year earnings has moved 5.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that FCFS has returned about 40.7% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -11.9% on a year-to-date basis. This shows that FirstCash Holdings is outperforming its peers so far this year.
Paysign, Inc. (PAYS - Free Report) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.2%.
For Paysign, Inc., the consensus EPS estimate for the current year has increased 10.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, FirstCash Holdings is a member of the Financial Transaction Services industry, which includes 35 individual companies and currently sits at #80 in the Zacks Industry Rank. This group has lost an average of 17.5% so far this year, so FCFS is performing better in this area. Paysign, Inc. is also part of the same industry.
Investors with an interest in Business Services stocks should continue to track FirstCash Holdings and Paysign, Inc.. These stocks will be looking to continue their solid performance.
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. FirstCash Holdings (FCFS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
FirstCash Holdings is one of 233 individual stocks in the Business Services sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. FirstCash Holdings is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for FCFS' full-year earnings has moved 5.8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that FCFS has returned about 38% since the start of the calendar year. Meanwhile, stocks in the Business Services group have lost about 9.9% on average. This means that FirstCash Holdings is outperforming the sector as a whole this year.
One other Business Services stock that has outperformed the sector so far this year is Green Dot (GDOT - Free Report) . The stock is up 0.5% year-to-date.
In Green Dot's case, the consensus EPS estimate for the current year increased 19.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, FirstCash Holdings belongs to the Financial Transaction Services industry, a group that includes 35 individual stocks and currently sits at #58 in the Zacks Industry Rank. On average, this group has lost an average of 15.9% so far this year, meaning that FCFS is performing better in terms of year-to-date returns. Green Dot is also part of the same industry.
Going forward, investors interested in Business Services stocks should continue to pay close attention to FirstCash Holdings and Green Dot as they could maintain their solid performance.
Pawn shops are not where most people park their savings, but FirstCash Holdings NASDAQ: FCFS could be an exception. FirstCash is a pawn company, and its stock is booming.
FirstCash Today
$224.56 +6.16 (+2.82%)
As of 02:31 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$119.21▼
$235.97Dividend Yield0.75%
P/E Ratio28.14
Price Target$198.00
With more than 3,300 stores across the United States, Latin America, and the United Kingdom, FirstCash has grown into one of the largest alternative finance companies for non-prime consumers.
Its first-quarter earnings were up 30% year-over-year, its revenue was up 26%, and its shares are up more than one-third this year.
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It helps that people increasingly need these financial alternatives to manage their budgets. Whether that momentum is durable, however, depends on the future fortunes of consumers.
Pawn Loans Create a Resilient Business ModelThe pawnshop business might not be what many investors expect. A pawnshop does not make unsecured loans or check credit scores. A customer brings in an item—mostly jewelry, but also electronics, tools, musical instruments, or something else of value—and receives a short-term loan using the item as collateral. If the customer repays the loan plus fees, they get their item back. If they do not, FirstCash keeps the item and sells it. The company makes money either way.
That model makes the pawn business unusually resilient. When the economy is strong, customers pick up their items, and FirstCash earns fee income. When the economy weakens, more consumers need cash, pawn demand rises, and the company earns fees plus more profits by selling more merchandise.
Right now, unfortunately for consumers, is a good time for pawnshops. FirstCash’s pawn receivables, or the value of outstanding loans secured by collateral, reached a record $851 million at the end of the first quarter, up 70% from a year earlier.
Strong Pawn Demand Fueled First-Quarter ResultsThat helps explain the powerful first quarter. Consolidated revenue at FirstCash increased 26%, reaching $1.05 billion versus $836 million a year ago. Net income came in at $108 million, up 29% on a GAAP basis. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 29% to $211 million. Fully diluted earnings per share increased 30% to $2.43 on a GAAP basis and $2.69 on an adjusted basis, above expectations.
Driving these results was an exceptionally strong performance from all three of its pawn segments. Combined pawn revenues increased 40% in the first quarter YOY, and total income from the pawn segment rose 60% over the same period.
In all, FirstCash ended the first quarter with 3,334 store locations, including 1,207 in the U.S., 1,838 in Latin America, and 289 in the U.K. Consolidated assets at March 31 hit a record $5.4 billion, compared to $4.4 billion a year ago.
All 3 Pawn Segments Are Driving GrowthThe U.S. pawn segment is its largest business, with $489 million revenue in the first quarter. And demand has grown. The company posted 16% revenue growth with pre-tax operating income rising by 25%. U.S. same-store pawn receivables grew 19%, the eleventh consecutive quarter of double-digit growth. Pawn loan fees rose 14% and retail merchandise sales grew 13% in the U.S., with retail margins improving to 44% from 42% a year ago.
Latin America’s growth was even more striking. Total segment revenue rose 40% adjusted to U.S. dollars, and the segment’s pre-tax operating income hit a record $51 million, up 62% in dollar terms. Results benefited somewhat from exchange-rate fluctuations. On a local currency basis, both revenue and pawn fees grew 23%.
The U.K. segment is relatively new but has already contributed twice as much as Latin America. FirstCash acquired H&T, the U.K.’s leading pawnbroker in August 2025. That operation contributed $102 million in first-quarter revenue with a 39% pre-tax operating margin. Pawn receivables in the U.K. reached $215 million, up 29% on a same-store local currency basis, compared with the pre-acquisition prior year.
American First Finance Expands Its Reach Beyond PawnshopsIn addition to its pawn footprint, FirstCash also owns American First Finance, which it bought five years ago, significantly expanding its reach into the buy now, pay later and lease-to-own sectors. That operation brings in roughly 20% of the company’s revenue. Today, American First has about 16,600 active retail and e-commerce point-of-sale merchant partner locations, up 14% from a year ago.
For the quarter, the lending unit was the only segment to decline. But the decline was expected as the year-ago period included run-off revenue from earlier merchant partner bankruptcies. The segment posted pre-tax operating income of $26 million with gross revenue down 11%.
Management Raises Its Outlook for 2026Given the recent results, FirstCash raised its full-year 2026 revenue guidance. Pawn operations are expected to account for nearly 90% of total net revenue and segment pre-tax income for the full year, it said. Already in April, same-store pawn receivables were running up more than 20% in the U.S. YOY, and retail merchandise sales are expected to grow 10% or more. Its Latin American business is projected to grow in the mid- to high-teens. And for the U.K., full-year income is now expected in the range of $125 million to $135 million, up from prior guidance of $115 million to $125 million.
Analysts Continue to View the Stock FavorablyFirstCash Stock Forecast Today12-Month Stock Price Forecast:
$198.00
-11.18% Downside
Buy
Based on 6 Analyst Ratings
Current Price$222.91High Forecast$252.00Average Forecast$198.00Low Forecast$145.00FirstCash Stock Forecast Details
With FirstCash’s business model and predictions of further consumer pressures, it’s perhaps not surprising that analysts overall are giving the company a solid Buy rating. The stock is already up more than 60% from a year ago and over 30% this year alone.
Although the consensus 12-month price target is slightly lower than current trading levels, five analysts rate the company a Buy, with one listing it as a Hold. The highest price target is $252 a share, with the lowest sitting at $145. Although not dividend-rich, the company has increased its payout to shareholders for eight consecutive years. It currently pays 42 cents a share quarterly and spent $50 million in the first quarter out of a $150 buyback program, repurchasing shares.
Investors Should Keep Several Risks in MindFirstCash might be a well-run company in a misunderstood niche of the financial sector, but it’s not without its risks. Significant growth has come through acquisitions, which can bring regulatory, cultural, and system integration headaches.
Currency risk is also real. A large portion of its pawn stores operate in Mexico, and the company estimates that each full-point change in the dollar-to-peso exchange rate affects annual earnings by roughly 10 to 12 cents per share. A comparable shift in the British pound could move earnings by 7-9 cents.
And FirstCash is not a neglected value play. At a P/E ratio above 25, significant value is already priced in.
But the pawn business has been around for centuries, and it’s not going away. If you're looking for a financial company that profits whether the economy booms or busts, the pawn industry’s three gold balls might look good in your portfolio.
Should You Invest $1,000 in FirstCash Right Now?Before you consider FirstCash, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and FirstCash wasn't on the list.
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Shares of AppLovin (APP +3.50%) rallied 10.4% on the day.
AppLovin didn't report any financial news today, as its first-quarter earnings report came on May 11. However, one Wall Street analyst gave the stock a thumbs-up on Wednesday, noting that AppLovin's growth potential may still be underestimated.
Today's Change
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16.75
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495.32
Morgan Stanley thinks AppLovin can outgrow estimates In an analyst note today, Morgan Stanley analyst Matthew Cost kept an Overweight rating and a $720 price target on the stock. That compares with a $514 stock price at the start of the day.
Cost believes Applovin can continue to outgrow analysts' and skeptics' expectations, noting that while AppLovin's growth runway is "mature" in a certain sense, there is still room for more growth over the next few years than people think.
Cost points out that skeptics cite AppLovin's average 60% growth rate between 2023 and 2025, which far outpaced mobile game spending of 5%. Moreover, skeptics point out that AppLovin's ad load -- or the number of ads it shows -- already looks "full," at roughly 20 per hour.
However, Cost also notes that roughly 99% of AppLovin's ads don't convert into purchases. There, Cost sees opportunity for AppLovin to flex its data advantages over the next few years, improving on that figure. Cost estimates that if AppLovin can just improve conversion by 20 basis points per year, it could beat 2030 consensus estimates by a whopping 50%.
Image source: Getty Images.
AppLovin is a controversial growth stock AppLovin survived numerous short-seller attacks over the past two years and hit an all-time high at the end of 2025. However, this digital ad technology stock is currently well off those highs following this year's "SaaS-pocalypse," in which software stocks have sold off amid AI disruption fears.
To be fair, the stock doesn't look "cheap" in the conventional sense, at nearly 50 times earnings. However, for a company that grew nearly 60% last quarter, that's not too high a price, provided its growth runway doesn't run into a wall. At least one Wall Street analyst doesn't think that will happen, as outlined in Cost's note today.
Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Digital Brands Group (NASDAQ: DBGI) just announced a new AI brand protection collaboration with a globally recognized outdoor performance label — its latest step in a deliberate pivot from apparel operator to AI-enabled platform.
, /PRNewswire/ -- Equity Insider News Commentary – Two AI stories are unfolding inside consumer brands at the same time. The first is well-known: AI agents are starting to do the shopping. According to Adobe Analytics, AI-driven traffic to U.S. retail sites jumped roughly 693% year-over-year during the 2025 holiday shopping season, and McKinsey now estimates the global agentic commerce opportunity could reach $3 trillion to $5 trillion by 2030. The second story is quieter but in many ways more urgent: the same AI tools that are reshaping discovery are also being used by counterfeiters and bad actors to scale brand abuse, fake listings, and IP infringement at levels traditional enforcement was never built for. The most recent OECD-EUIPO data estimates the global trade in fake goods at roughly $467 billion, and industry reporting suggests that as much as 83% of online counterfeiting now flows through social and e-commerce channels.
Most public companies are picking one of those two stories to chase. One small-cap NASDAQ name has been steadily building toward both.
On May 28, 2026, Digital Brands Group, Inc. (NASDAQ: DBGI) announced a new strategic AI and brand protection collaboration with a globally recognized outdoor performance apparel brand. The release describes the partner as one of the leading premium outdoor brands worldwide — known for technical outerwear, an innovation-driven product ecosystem, and significant international retail presence. The initiative is being supported through DBG's existing relationship with SECUR3D Inc., the Vancouver-based AI brand protection company whose technology is expected to assist in identifying unauthorized digital assets, counterfeit-related listings, and broader online intellectual property concerns across digital marketplaces and emerging online channels.
"This collaboration represents another important step in Digital Brands Group's broader technology strategy," said Hil Davis, CEO of Digital Brands Group. "We believe AI-powered tools will become increasingly important as global brands continue navigating rapidly evolving digital commerce environments. Our goal is to continue building relationships and technology partnerships that create meaningful long-term value across the broader retail and consumer brand landscape."
Why it matters: the new collaboration is not the first signal of where DBG is headed — it's the latest in a clearly accelerating sequence.
In November 2025, Digital Brands Group introduced SECUR3D and its AssetSafe platform as the anchor of an AI-driven brand protection ecosystem. In March 2026, the Company released early data from its first major SECUR3D deployment — a partnership with retro backpack brand Herschel Supply Co. — where the initial scan phase alone identified counterfeit activity tied to an estimated $500,000 in losses from unauthorized listings and brand misuse. Just last week, DBG announced a separate partnership with applied AI company Renov AI, supported by the MITACS innovation ecosystem, to advance data intelligence, automation, and analytics across the Company's brand protection and eCommerce roadmap.
Layered together, those moves describe a company that started as a digitally native vertical apparel brand and is being rebuilt — partnership by partnership — into something closer to an AI infrastructure play for modern consumer brands. The DTC apparel business gives the technology a live operating environment. The technology gives the apparel business a thesis institutional investors don't typically associate with small-cap fashion tickers.
Founded in Vancouver, BC, SECUR3D is an AI-powered brand and intellectual property protection company helping brands, creators, and platforms detect and protect digital assets across online marketplaces and digital ecosystems. Through its proprietary technology suite — including AssetSafe, Sentry, and Sherlock AI — SECUR3D delivers an end-to-end protection layer for detecting unauthorized IP use, monitoring infringement risk, supporting enforcement intelligence, and preserving brand integrity and consumer trust across fashion, entertainment, gaming, and digital commerce.
Digital Brands Group has signaled that this is the direction of travel. The Company sees AI-powered infrastructure and monitoring technologies becoming increasingly important for global brands seeking to protect intellectual property, strengthen digital trust, and better manage large-scale online retail environments — and intends to continue exploring a broader suite of AI partnerships across digital commerce, brand protection, operational intelligence, customer engagement, and emerging online ecosystems.
DBG is operating in a category where capital is concentrated, the public-market opportunity is narrow, and large software incumbents are now openly competing on AI commerce and AI security positioning. A handful of NYSE- and NASDAQ-listed names have been moving in adjacent corners of the same opportunity over the last several weeks.
Other Public Names Moving in the AI Commerce and Brand Protection Stack
Klaviyo (NYSE: KVYO) reported its first-quarter 2026 results on May 6, 2026, with revenue of $358 million (up 28% year-over-year), GAAP net income of $9 million (versus a $14 million net loss a year earlier), and a full-year revenue outlook raised to a range of $1.514 billion to $1.522 billion. The B2C marketing platform also introduced new AI capabilities through Custom Skills for its Customer Agent product, positioning itself as what it describes as an "Autonomous B2C CRM." On May 7, 2026, Klaviyo separately announced an expanded integration with Anthropic, extending its Model Context Protocol (MCP) server across Claude.ai and Claude Cowork to bring agentic marketing workflows directly into the AI tools brands are increasingly adopting.
Shopify (NYSE: SHOP) has been one of the most aggressive incumbents in agentic commerce. Speaking on the Company's Q1 2026 earnings call, President Harley Finkelstein highlighted that AI-driven traffic to Shopify stores ran roughly 8x year-over-year in Q1 2026, while orders from AI-powered searches were up 13-fold. As of March 2026, Shopify made its Agentic Storefronts generally available to millions of merchants, giving them out-of-the-box access to major AI channels including ChatGPT, Microsoft Copilot, AI Mode in Google Search, and the Gemini app, all managed from the Shopify Admin.
Palo Alto Networks (NASDAQ: PANW) has been pushing harder into AI-era trust and identity. On May 12, 2026, the cybersecurity leader unveiled Idira, a next-generation identity security platform designed for AI enterprises, with capabilities aimed at discovering, controlling, and governing human, machine, and agentic identities. Around the same time, the Company highlighted a frontier AI-focused partnership with Armadin that adds autonomous, AI-based offensive testing to its Unit 42 Frontier AI Defense stack — reinforcing PANW's positioning at the center of AI-era cyber defense for enterprises.
AppLovin (NASDAQ: APP) reported first-quarter 2026 revenue of $1.84 billion and net income of $1.21 billion in early May, beating consensus estimates and prompting bullish target revisions from UBS, Deutsche Bank, Macquarie, Wedbush, Oppenheimer, and Jefferies. The Company guided Q2 revenue to a range of $1.915 billion to $1.945 billion, with adjusted EBITDA of $1.615 billion to $1.645 billion — both above Street expectations. AppLovin's AXON AI advertising engine remains the core growth driver, with the Company also announcing that AXON will open to all advertisers worldwide in June 2026 — a shift management has described as ending more than a decade of operating AXON as a closed system.
A Different Way to Get Public-Market Exposure
Most of the well-known names in AI brand protection — MarqVision, Red Points, BrandShield, Corsearch — remain private. The publicly traded names sitting nearest to the theme are large-cap incumbents like Shopify, Klaviyo, Palo Alto Networks, and AppLovin, each playing different positions on the same AI-meets-commerce field. What makes Digital Brands Group unusual is the angle of attack: a small-cap NASDAQ ticker that is layering AI brand protection (SECUR3D), applied AI engineering (Renov AI), and AI-powered influencer marketing (Aha, formerly HeadAI) on top of a real direct-to-consumer apparel operating business that serves as the proving ground.
The newly announced collaboration with a globally recognized outdoor performance brand adds a high-visibility validation customer in a category — premium technical outerwear — that has been a long-standing target for counterfeiters. If the Herschel scan-phase data is any indication of what the AssetSafe platform can identify at scale, the new partnership could become an important reference deployment as DBG continues onboarding additional brands into the AI brand protection ecosystem it is building.
The Company has said its strategy is to continue building relationships and technology partnerships that create long-term value across the broader retail and consumer brand landscape. For investors looking for an unusual public-market angle on AI in commerce — one that touches both the growth side (how brands reach customers) and the defense side (how brands protect themselves) — that roadmap is one of the more differentiated setups on NASDAQ heading into the second half of 2026.
CONTINUED READING: To learn more about Digital Brands Group, Inc. (NASDAQ: DBGI), visit https://ir.digitalbrandsgroup.co.
[1] Digital Brands Group, Inc. – "Digital Brands Group Advances Enterprise AI Strategy Through Collaboration with Globally Recognized Outdoor Apparel Brand," May 28, 2026.
[2] Digital Brands Group, Inc. – "Digital Brands Group Expands Suite of eCommerce Tools Through Partnerships With SECUR3D," November 14, 2025. https://www.globenewswire.com/news-release/2025/11/14/3188348/0/en/Digital-Brands-Group-Expands-Suite-of-eCommerce-Tools-Through-Partnerships-With-SECUR3D.html
[3] Consumer Goods Technology – "Herschel Supply Co., Digital Brands Group Fight Counterfeiting With AI," March 27, 2026. https://consumergoods.com/herschel-supply-co-digital-brands-group-fight-counterfeiting-ai
[4] Shopify – "Agentic Commerce on Shopify: How It Works (2026)," April 2026. https://www.shopify.com/blog/how-agentic-commerce-works
[5] Anaqua – "Using AI to Protect Brands from Counterfeiting in E-Commerce," citing 2025 OECD figure of $467 billion in global trade in fake goods. https://www.anaqua.com/resource/using-ai-to-protect-brands-from-counterfeiting-in-e-commerce/
[6] Investing.com – "Klaviyo Q1 2026 slides: AI push drives beat, margins hit record high," May 5, 2026. https://www.investing.com/news/company-news/klaviyo-q1-2026-slides-ai-push-drives-beat-margins-hit-record-high-93CH-4661437
[8] Palo Alto Networks – "Palo Alto Networks Introduces Idira: the Next-Generation Identity Security Platform Built for the AI Enterprise," May 12, 2026. https://www.paloaltonetworks.com/company/press/2026/palo-alto-networks-introduces-idira--the-next-generation-identity-security-platform-built-for-the-ai-enterprise
[9] Simply Wall St – "AppLovin's AI-Fueled Profit Surge and Capital Moves Could Be A Game Changer For AppLovin (APP)," May 2026. https://simplywall.st/stocks/us/software/nasdaq-app/applovin/news/applovins-ai-fueled-profit-surge-and-capital-moves-could-be
[10] StocksToTrade – "APP Stock Jumps As Street Embraces Ad-Tech Growth Story," May 27, 2026. https://stockstotrade.com/news/applovin-corporation-app-news-2026_05_27-2/
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This document contains forward-looking statements regarding Digital Brands Group, Inc. that are based on the beliefs of the Company's management as well as assumptions made by, and information currently available to, the Company's management. Words such as "will," "anticipate," "estimate," "expect," "should," "may," and similar expressions are intended to identify forward-looking statements. Although Digital Brands Group, Inc. believes these statements are based on reasonable assumptions, actual results could differ materially from those expressed or implied in the forward-looking statements as disclosed in the Company's filings with the U.S. Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The forward-looking statements contained or referenced herein are made only as of the date of this document, and the Company undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.
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Key Takeaways Coherent's Datacenter & Communications revenue grew more than 40% year over year in 3Q FY26.APP is expanding into e-commerce with AI ad tools and a broader advertiser base.COHR ended fiscal Q3 with $2.5B cash and only $9M in current debt. Both Coherent (COHR - Free Report) and AppLovin (APP - Free Report) are emerging beneficiaries of the artificial intelligence boom, though from different angles. Coherent supplies optical networking and laser technologies critical for AI data centers, while AppLovin uses AI-driven algorithms to optimize digital advertising and app monetization. Investors are increasingly viewing both as high-growth AI-related opportunities with strong revenue momentum and expanding market relevance.
COHR: Strong AI Demand, Balance SheetCoherent continues to benefit from strong AI-driven demand alongside early signs of recovery in its industrial business. In the third quarter of fiscal 2026, the company’s Datacenter & Communications segment contributed 75% of total revenues, improving from 72% in the previous quarter. Revenue growth in the segment exceeded 40% year over year, accelerating from 33.5% in the prior quarter, supported by strong demand and effective execution across its product portfolio. CEO James Anderson stated that rising demand for transceivers and Optical Circuit Switch Systems was a key driver behind the growth.
While the Datacenter & Communications business remains Coherent’s primary growth engine, the industrial segment is also showing encouraging signs of improvement. Although weakness in certain parts of the broader industrial market continued to impact third-quarter fiscal 2026 results, semiconductor capital equipment demand improved significantly, leading to a notable increase in bookings.
Coherent ended the third quarter of fiscal 2026 with cash reserves of $2.5 billion, a significant increase from $899 million in the previous quarter. This strong cash position compares with only $9 million in current debt, reflecting solid liquidity. The company’s current ratio stood at 3.05, well above the industry average of 1.57, highlighting its ability to comfortably meet short-term obligations.
The company also continues to manage long-term debt effectively. Long-term debt totaled $3.1 billion in the third quarter of fiscal 2026, slightly lower than $3.2 billion in the previous quarter. Total debt represented 22.5% of total capital, improving from 27.4% in the prior quarter and remaining well below the industry average of 32.1%. Financial risk also declined, as reflected in the increase in times interest earned to 3.5 from 2.5 in the preceding quarter.
APP: Marketplace Strength, E-Commerce ExpansionAppLovin’s integrated marketplace continues to deliver strong results. Its MAX platform, paired with Axon 2.0 AI enhancements, is improving bid density and advertiser matching. This has translated into solid operating momentum through late 2025, with management expressing confidence in continued sequential growth into early 2026 despite typical seasonal softness.
A major long-term opportunity lies in improving conversion rates. Management believes these can gradually move toward roughly 5% from historical low single-digit levels. This would be driven by better AI models and increased advertiser diversity, especially beyond gaming. As more bidders enter the ecosystem, AppLovin benefits from take-rate mechanics, even on lower-value impressions, supporting steady share gains.
AppLovin is increasingly targeting web and e-commerce advertisers. Its self-serve Axon Ads platform is currently referral-only but is expected to become widely available in the first half of 2026. Generative AI features, including an interactive page generator and upcoming video ad tools, are designed to streamline onboarding and boost campaign performance.
This push into e-commerce could significantly expand AppLovin’s addressable market, helping it compete more directly with The Trade Desk in broader digital advertising while reducing reliance on gaming. Still, Unity Software remains a massive competitor within the gaming ecosystem, making diversification crucial for AppLovin’s long-term growth.
One of AppLovin’s biggest strengths is profitability. The company reported an adjusted EBITDA margin of about 84% in the fourth quarter of 2025, alongside free cash flow of roughly $1.3 billion. This highlights strong operating leverage and efficient cost management. Management expects similar margin levels in the first quarter of 2026, signaling durability even as the business expands into new verticals. Importantly, any increase in performance marketing spend is expected to remain ROI-driven, with early tests showing quick payback periods.
How Do Zacks Estimates Compare for COHR & APP?The Zacks Consensus Estimate for APP’s 2026 sales indicates year-over-year growth of 42%, and that for earnings indicates a year-over-year increase of 58%. EPS estimates have been trending upwards over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for COHR’s 2026 sales and EPS indicates year-over-year growth of 21.5% and 55%, respectively. EPS estimates have been trending upwards over the past 60 days.
Image Source: Zacks Investment Research
COHR’s Valuation More Attractive Than APPCOHR is trading at a forward price-to-sales multiple of 8.02X, above its 12-month median of 3.64X. APP’s forward price-to-sales multiple stands at 20.63X, below its median of 21.57X.
Coherent Appears Better PositionedCoherent appears better positioned for investors seeking a more balanced AI growth opportunity. The company is benefiting from rising demand for AI infrastructure while also showing early signs of recovery in its industrial business, creating multiple growth drivers. Its strong liquidity position and improving debt profile further strengthen confidence in its long-term outlook. Although AppLovin continues to deliver impressive profitability and advertising momentum, its premium valuation and competitive pressures in digital advertising may limit upside potential.
With the stocks carrying a Zacks Rank #3 (Hold) each at present, Coherent’s diversified growth profile and relatively attractive valuation give it the edge.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways AppLovin reported record first-quarter 2026 revenues of $1.84B, up 59% year over year.APP's Axon platform is supporting growth beyond gaming into e-commerce advertising.APP shares gained 53% over the past year as earnings estimates moved higher. AppLovin Corporation (APP - Free Report) continues to showcase exceptional growth momentum, driven by rising demand for its AI-powered advertising and app monetization solutions. The company’s latest revenue trajectory highlights the effectiveness of its expanding digital advertising ecosystem and improving operating leverage.
Quarterly revenue growth remained consistently strong across the period, rising from $406 million in the second quarter of 2023 to nearly $1 billion by the fourth quarter of 2024. Momentum accelerated further in 2025 as AppLovin crossed the $1 billion quarterly revenue mark and continued delivering sequential growth throughout the year. The company maintained this trajectory into the first quarter of 2026, reporting record quarterly revenues of $1.84 billion, reflecting 59% year-over-year growth. The sustained expansion highlights rising adoption of AppLovin’s AI-driven advertising platform and growing traction across broader digital advertising and e-commerce markets.
The sustained acceleration reflects strong adoption of AppLovin’s AI-enhanced advertising tools, including improvements driven by its Axon platform. Expansion beyond gaming into broader e-commerce and digital advertising markets is also supporting growth opportunities. As advertiser demand for AI-powered targeting and monetization solutions increases, AppLovin appears well-positioned to remain one of the strongest growth stories within the digital advertising and AI ecosystem.
How AppLovin Compares With Key U.S. PeersThe Trade Desk (TTD - Free Report) operates a demand-side platform focused on programmatic advertising, with a strong focus on data-driven targeting. While The Trade Desk benefits from premium brand exposure, its margin profile is more sensitive to advertising cycles than AppLovin. The Trade Desk emphasizes reach and transparency, whereas AppLovin emphasizes performance. As a result, TTD competes more on scale than efficiency.
Unity Software (U - Free Report) also intersects with advertising through its real-time 3D and monetization tools. However, Unity Software’s ad business is closely tied to developer ecosystems and remains more volatile. Unlike AppLovin, Unity Software is still balancing growth with profitability, making AppLovin’s margin stability a key differentiator among these peers.
APP’s Valuation and EstimatesThe stock has gained 53% over the past year, significantly outperforming the industry’s 15% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, APP trades at a forward price-to-earnings ratio of 33.41, well above the industry’s 23.6. It carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for APP’s earnings has been on the rise over the past 30 days.
APP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
AppLovin (APP - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this mobile app technology company have returned +29.2%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Technology Services industry, which AppLovin falls in, has gained 9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AppLovin is expected to post earnings of $3.70 per share, indicating a change of +63.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +3% over the last 30 days.
The consensus earnings estimate of $15.86 for the current fiscal year indicates a year-over-year change of +58%. This estimate has changed +0.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $21 indicates a change of +32.4% from what AppLovin is expected to report a year ago. Over the past month, the estimate has changed +2.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AppLovin is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AppLovin, the consensus sales estimate of $1.94 billion for the current quarter points to a year-over-year change of +54.1%. The $8.26 billion and $10.69 billion estimates for the current and next fiscal years indicate changes of +42.3% and +29.4%, respectively.
Last Reported Results and Surprise HistoryAppLovin reported revenues of $1.84 billion in the last reported quarter, representing a year-over-year change of +24.2%. EPS of $3.56 for the same period compares with $1.67 a year ago.
Compared to the Zacks Consensus Estimate of $1.77 billion, the reported revenues represent a surprise of +3.86%. The EPS surprise was +4.71%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AppLovin is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AppLovin. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
AppLovin (APP +3.50%) has shifted from a gaming-linked ad company into a high-margin AI software platform. Axon 2, the sale of its gaming business, and the push into e-commerce could create a powerful next chapter, but the stock's huge run and debt load make this a story investors need to watch carefully.
*Stock prices used were the market prices of May 22, 2026. The video was published on May 30, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
