Nov 6, 2025 6:00 PM Eastern Standard Time PROG Holdings, Inc. Declares Dividend Share SALT LAKE CITY--(BUSINESS WIRE)--PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Four Technologies, and Build, announced today its Board of Directors declared a quarterly cash dividend of $0.13 per share of common stock, payable on December 2, 2025, to shareholders of record as of the close of business on November 18, 2025. PROG Holdings, Inc. NYSE:PRG Details Headquarters: Draper, Utah ...

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Financial Data and Key Metrics Changes - Non-GAAP diluted EPS for the third quarter was $0.90, exceeding the outlook range of $0.70 to $0.75 per share, marking the third consecutive earnings beat this year [7][28] - Consolidated revenue for Q3 was $595.1 million, reflecting a slight decline compared to $606.1 million in the same period last year [27][28] - Consolidated adjusted EBITDA was $67 million, or 11.3% of revenue, compared to $63.5 million, or 10.5% of revenue in Q3 of 2024 [27][28] Business Line Data and Key Metrics Changes - Progressive Leasing GMV was $410.9 million, representing a year-over-year decline of 10%, but underlying performance showed mid-single-digit growth when adjusting for the Big Lots bankruptcy and tightening of lease approvals [23][24] - Revenue for Progressive Leasing was down approximately 4.5% at $556.6 million compared to $582.6 million in the prior year [24] - Four Technologies delivered triple-digit revenue growth for the eighth consecutive quarter, with a year-to-date adjusted EBITDA of $11.1 million, representing a 23% margin on revenue [18][19] Market Data and Key Metrics Changes - E-commerce GMV accounted for 23% of total Progressive Leasing GMV in Q3 2025, up from 20.9% in Q2 and 16.6% in Q3 2024 [13] - The overall demand environment remains soft across many durable goods categories, which is expected to continue into Q4 [21] Company Strategy and Development Direction - The company is focused on improving capital efficiency and profitability through the sale of the VIVE Financial Credit Card Receivables Portfolio, which strengthens the balance sheet and allows for better capital allocation [11][29] - Strategic priorities include investing in growth, exploring M&A opportunities, and returning excess cash to shareholders through share repurchases and dividends [12][29] Management's Comments on Operating Environment and Future Outlook - Management noted persistent consumer challenges due to inflationary pressures and financial stress among lower-income households, impacting discretionary spending [8][21] - The company anticipates that GMV pressures will continue into Q4, with expectations for improvement in Q1 2026 as the toughest year-over-year comparisons will roll off [36][52] Other Important Information - The company ended Q3 with $292.6 million in cash and $600 million of gross debt, resulting in a net leverage ratio of 1.1 times [29][30] - The sale of the VIVE portfolio is expected to provide approximately $150 million, enhancing liquidity and creating flexibility for future investments [29][30] Q&A Session Summary Question: Update on consumer pulse amid economic pressures - Management acknowledged elevated delinquencies but noted improvements in write-offs due to prior tightening actions, indicating a cautious but stable portfolio [34][35] Question: GMV outlook for the rest of the year - Management indicated that Q3 was a tough comp and that pressures would likely persist into Q4, with expectations for improvement in Q1 2026 [36][37] Question: Discussion on trade down effects - Management noted that while there has been tightening in the market, they have not observed significant trade down effects impacting their customer base [45][46] Question: Insights on Four Technologies and customer acquisition - Management highlighted that Four Technologies has seen organic growth driven by referrals and user-generated content, indicating strong customer engagement [85]

PROG (NYSE:PRG) Q3 2025 Earnings Call October 22, 2025 08:30 AM ET Company ParticipantsBobby Griffin - Managing Director of Equity ResearchBrian Garner - CFOJohn Hecht - Managing DirectorHoang Nguyen - Equity ResearchJohn Baugh - VP of Investor RelationsSteve Michaels - President and CEOBrad Thomas - Associate Director of ResearchKyle Joseph - Managing DirectorConference Call ParticipantsVincent Caintic - Managing Director and Specialty Finance AnalystAnthony Chukumba - Managing Director, Senior Research An ...

Financial Data and Key Metrics Changes - Non-GAAP diluted EPS for Q3 was $0.90, exceeding the outlook range of $0.70 to $0.75, marking the third consecutive earnings beat this year [5][20] - Consolidated revenue for Q3 was $595.1 million, reflecting a slight decline from $606.1 million in the same period last year [23][28] - Consolidated adjusted EBITDA was $67 million, or 11.3% of revenue, compared to $63.5 million, or 10.5% of revenue in Q3 of 2024 [23][24] Business Line Data and Key Metrics Changes - Progressive Leasing GMV for Q3 was $410.9 million, representing a year-over-year decline of 10%, but underlying performance showed mid-single-digit growth when adjusting for the Big Lots bankruptcy and tightening of lease approvals [20][21] - Revenue for Progressive Leasing was down approximately 4.5% at $556.6 million compared to $582.6 million in the prior year, impacted by GMV headwinds [21][22] - Write-offs for Progressive Leasing were at 7.4%, showing improvement both sequentially and year-over-year, reflecting effective risk management [21][22] Market Data and Key Metrics Changes - E-commerce GMV accounted for 23% of total Progressive Leasing GMV in Q3 2025, up from 20.9% in Q2 and 16.6% in Q3 2024, indicating growth in online channels [11] - Four Technologies delivered triple-digit revenue growth for the eighth consecutive quarter, with over 80% of GMV coming from active subscribers [15][16] Company Strategy and Development Direction - The company is focused on improving capital efficiency and profitability through the sale of the VIVE Financial Credit Card Receivables Portfolio, which is expected to enhance overall profitability and allow for better capital allocation [9][10] - Strategic pillars include growing direct-to-consumer performance, enhancing technology for customer experience, and expanding the multi-product ecosystem [11][14][15] - The company aims to deepen engagement with existing retail partners and expand its footprint across national and regional segments [12] Management's Comments on Operating Environment and Future Outlook - Management noted persistent consumer challenges due to inflation and financial stress among lower-income households, impacting discretionary spending [6][17] - The outlook for Q4 anticipates continued headwinds from the Big Lots bankruptcy and a soft demand environment, with expectations for improvement in 2026 as macro conditions stabilize [34][45] - The company remains committed to disciplined capital allocation, focusing on growth initiatives, strategic M&A, and returning excess capital to shareholders [26][53] Other Important Information - The company ended Q3 with $292.6 million in cash and $600 million of gross debt, resulting in a net leverage ratio of 1.1 times [26][27] - The sale of the VIVE portfolio is expected to provide approximately $150 million in proceeds, enhancing liquidity and financial flexibility [26][27] Q&A Session Summary Question: Update on consumer pulse amid economic pressures - Management acknowledged elevated delinquencies but noted improved write-offs due to prior tightening actions, indicating a cautious but stable portfolio [31][32] Question: GMV outlook for the rest of the year - Management indicated that Q3 was a tough comp and expected similar headwinds into Q4, with hopes for improvement in 2026 [34][35] Question: Capital allocation strategy post-VIVE sale - Management emphasized a focus on growth initiatives and strategic M&A, with share repurchases considered only after these priorities [52][53] Question: Insights on Four Technologies and customer acquisition - Management highlighted strong organic growth driven by referrals and word-of-mouth, with plans to enhance cross-selling opportunities between Four Technologies and leasing [64][75]

PROG (NYSE:PRG) Q3 2025 Earnings Call October 22, 2025 08:30 AM ET Speaker0Day, and thank you for standing by. Welcome to the Brock Holdings Third Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please note that today's conference is being recorded.I will now hand the conference over to your speaker host, John Bubb, Vice President of Investor Relations. Please go ahead.Speaker1Thank you ...

PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the Balance Sheets, Statements of Earnings, and Statements of Cash Flows, along with detailed notes explaining the company's business, accounting policies, fair value measurements, loan receivables, commitments, contingencies, restructuring expenses, segment information, income taxes, and a significant subsequent event regarding the sale of Vive Financial. [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%E2%80%93%20September%2030%2C%202025%20(Unaudited)%20and%20December%2031%2C%202024) This section presents the company's unaudited condensed consolidated balance sheets as of September 30, 2025, and December 31, 2024 **ASSETS (In Thousands):** | ASSETS (In Thousands) | Sep 30, 2025 | Dec 31, 2024 | | :---------------------- | :----------- | :----------- | | Cash and Cash Equivalents | $292,610 | $95,655 | | Accounts Receivable (net) | $63,742 | $80,225 | | Lease Merchandise (net) | $501,152 | $680,242 | | Loans Receivable (net) | $160,350 | $146,985 | | Total Assets | $1,546,601 | $1,513,767 | | LIABILITIES & EQUITY (In Thousands) | Sep 30, 2025 | Dec 31, 2024 | | :---------------------- | :----------- | :----------- | | Accounts Payable and Accrued Expenses | $101,314 | $93,190 | | Deferred Income Tax Liabilities | $105,707 | $74,320 | | Debt, Net | $594,537 | $643,563 |\ | Total Liabilities | $843,044 | $863,486 |\ | Total Shareholders' Equity | $703,557 | $650,281 |\ | Total Liabilities & Shareholders' Equity | $1,546,601 | $1,513,767 | - **Cash and Cash Equivalents** increased by **$196.9 million** from December 31, 2024, to September 30, 2025, reaching **$292.6 million**[10](index=10&type=chunk)[166](index=166&type=chunk) - **Lease Merchandise (net)** decreased by **$179.1 million**, primarily due to a decrease in **Progressive Leasing's GMV** and higher **early buyouts**[10](index=10&type=chunk)[166](index=166&type=chunk) - **Debt, Net** decreased by **$49.0 million**, mainly due to the repayment of **$50.0 million** on the **Revolving Facility** in January 2025[10](index=10&type=chunk)[166](index=166&type=chunk) [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20(Unaudited)%20%E2%80%93%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202025%20and%202024) This section presents the company's unaudited condensed consolidated statements of earnings for the three and nine months ended September 30, 2025, and 2024 REVENUES (In Thousands): | REVENUES (In Thousands) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :---------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Lease Revenues and Fees | $556,583 | $582,551 | $1,777,814 | $1,773,617 | | Interest and Fees on Loans Receivable | $38,525 | $23,594 | $106,045 | $66,559 | | Total Revenues | $595,108 | $606,145 | $1,883,859 | $1,840,176 | | OPERATING PROFIT | $53,529 | $49,231 | $170,574 | $144,726 | | NET EARNINGS | $33,121 | $83,962 | $106,322 | $139,702 | | Basic EPS | $0.83 | $1.99 | $2.64 | $3.25 | | Diluted EPS | $0.82 | $1.94 | $2.60 | $3.19 | | Cash Dividends Declared Per Share | $0.13 | $0.12 | $0.39 | $0.36 | - **Total Revenues decreased by 1.8%** for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to **lower lease revenues**, partially offset by **growth in Other operations**[12](index=12&type=chunk)[132](index=132&type=chunk) - **Net Earnings decreased by 60.6%** for the three months ended September 30, 2025, compared to the same period in 2024, largely due to a **significant income tax benefit in the prior year**[12](index=12&type=chunk)[151](index=151&type=chunk) - For the nine months ended September 30, 2025, **Net Earnings decreased by 23.9%** to **$106.3 million**, compared to **$139.7 million** in the prior year, primarily due to a **non-cash reversal of an uncertain tax position in 2024**[12](index=12&type=chunk)[152](index=152&type=chunk)[165](index=165&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)%20%E2%80%93%20Nine%20Months%20Ended%20September%2030%2C%202025%20and%202024) This section presents the company's unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2025, and 2024 Cash Flow Activity (In Thousands): | Cash Flow Activity (In Thousands) | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Net Earnings | $106,322 | $139,702 | | Cash Provided by Operating Activities | $389,865 | $223,013 | | Cash Used in Investing Activities | $(69,041) | $(35,648) | | Cash Used in Financing Activities | $(123,869) | $(121,055) | | Increase in Cash and Cash Equivalents | $196,955 | $66,310 | | Cash and Cash Equivalents at End of Period | $292,610 | $221,726 | - **Cash provided by operating activities** increased by **$166.9 million** to **$389.9 million** for the nine months ended September 30, 2025, primarily due to a **$93.3 million** decrease in **cash paid for lease merchandise**[15](index=15&type=chunk)[168](index=168&type=chunk) - **Cash used in investing activities** increased by **$33.4 million** to **$69.0 million**, mainly due to a **$314.5 million** increase in **investments in loans receivable**, partially offset by a **$282.6 million** increase in **proceeds from loan repayments**[15](index=15&type=chunk)[169](index=169&type=chunk) - **Cash used in financing activities** was **$123.9 million**, primarily for **repayment of the revolving credit facility** (**$50.0 million**), **share repurchases** (**$51.8 million**), and **cash dividends** (**$15.6 million**)[15](index=15&type=chunk)[170](index=170&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanatory notes to the unaudited condensed consolidated financial statements [NOTE 1. BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=6&type=section&id=NOTE%201.%20BASIS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note describes the company's business segments, significant accounting policies, and recent accounting pronouncements - **PROG Holdings** operates as a **financial technology holding company** with two reportable segments as of September 30, 2025: **Progressive Leasing** (**lease-to-own solutions**) and **Vive Financial** (**second-look revolving credit products**)[16](index=16&type=chunk) - The **Vive segment's assets**, primarily its **credit card receivable portfolio**, were sold on October 20, 2025, marking a strategic shift, and will be reported as **discontinued operations** from Q4 2025[18](index=18&type=chunk)[118](index=118&type=chunk) - **Four Technologies, Inc. (BNPL)** is not a reportable segment due to its financial results not being significant, and its results are included within 'Other'[19](index=19&type=chunk)[106](index=106&type=chunk) Accounts Receivable Allowance (In Thousands): | Item | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Beginning Balance | $68,788 | $64,682 | $71,607 | $64,180 | | Net Book Value of Accounts Written Off | $(90,920) | $(89,050) | $(283,158) | $(260,885) | | Recoveries | $9,480 | $8,224 | $32,026 | $28,823 | | Accounts Receivable Provision | $86,318 | $89,336 | $253,191 | $241,074 | | Ending Balance | $73,666 | $73,192 | $73,666 | $73,192 | Allowance for Lease Merchandise Write-offs (In Thousands): | Item | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Beginning Balance | $48,863 | $48,668 | $51,874 | $44,180 | | Net Book Value of Merchandise Written off | $(43,135) | $(44,533) | $(140,947) | $(130,526) | | Recoveries | $2,023 | $2,605 | $6,173 | $6,162 | | Provision for Write-offs | $41,037 | $44,736 | $131,688 | $131,660 | | Ending Balance | $48,788 | $51,476 | $48,788 | $51,476 | - The Company adopted **ASU 2023-07 (Segment Reporting)** for the year ended December 31, 2024, with no impact on financial position or results of operations[72](index=72&type=chunk) - The Company plans to adopt **ASU 2023-09 (Income Tax Disclosures)** for the fiscal year beginning January 1, 2025, and does not expect a material impact on consolidated financial statements[73](index=73&type=chunk) [NOTE 2. FAIR VALUE MEASUREMENT](index=17&type=section&id=NOTE%202.%20FAIR%20VALUE%20MEASUREMENT) This note details the fair value measurements of financial liabilities and certain assets, including valuation methodologies and input levels Financial Liabilities Measured at Fair Value (In Thousands): | Item | September 30, 2025 (Level 2) | December 31, 2024 (Level 2) | | :-------------------------- | :--------------------------- | :--------------------------- | | Deferred Compensation Liability | $3,673 | $2,971 | Fair Value of Fixed-Rate Debt and Loans Receivable (In Thousands): | Item | September 30, 2025 (Level 2/3) | December 31, 2024 (Level 2/3) | | :-------------------------- | :----------------------------- | :----------------------------- | | Senior Notes | $588,720 (Level 2) | $573,720 (Level 2) | | Loans Receivable, Net | $190,727 (Level 3) | $172,892 (Level 3) | - **Vive's loans receivable** are measured at **amortized cost**, with fair value estimated using a **discounted cash flow methodology** (Level 3 inputs)[79](index=79&type=chunk) - **Four's loans receivable, net**, approximated fair value based on a **discounted cash flow methodology**[80](index=80&type=chunk) [NOTE 3. LOANS RECEIVABLE](index=17&type=section&id=NOTE%203.%20LOANS%20RECEIVABLE) This note provides a breakdown of loans receivable, including credit quality, aging, and the allowance for loan losses Loans Receivable, Net (In Thousands): | Item | September 30, 2025 | December 31, 2024 | | :-------------------------- | :----------------- | :----------------- | | Loans Receivable, Gross | $222,155 | $204,327 | | Allowance for Loan Losses | $(51,468) | $(47,783) | | Loans Receivable, Net of Allowances and Unamortized Fees | $160,350 | $146,985 | - **Loans Receivable, Net** attributable to **Four was** **$35.6 million** as of September 30, 2025, up from **$34.9 million** at December 31, 2024[83](index=83&type=chunk) Credit Quality of Loan Portfolio by FICO Score (Vive) and Proprietary Risk Category (Four): | Category | September 30, 2025 | December 31, 2024 | | :-------------------------- | :----------------- | :----------------- | | **Vive - FICO Score Category:** | | | | 700 or greater | **13.1 %** | **12.8 %** | | Between 700 and 600 | **73.8 %** | **76.9 %** | | 600 or less | **13.1 %** | **10.3 %** | | **Four - Proprietary Risk Category:** | | | | Category A | **27.3 %** | **26.9 %** | | Category B | **48.0 %** | **48.6 %** | | Category C | **24.7 %** | **24.5 %** | Aging of Loans Receivable, Gross Balance (September 30, 2025): | Aging Category | Percentage | | :-------------------------- | :--------- | | 30-59 Days Past Due | **7.6 %** | | 60-89 Days Past Due | **4.8 %** | | 90 or More Days Past Due | **5.6 %** | | Past Due Loans Receivable | **18.0 %** | | Current Loans Receivable | **82.0 %** | Allowance for Loan Losses (In Thousands): | Item | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Beginning Balance | $48,972 | $40,242 | $47,783 | $40,620 | | Provision for Loan Losses | $20,645 | $15,133 | $52,422 | $38,217 | | Charge-offs | $(21,155) | $(13,992) | $(56,971) | $(41,170) | | Recoveries | $3,006 | $1,858 | $8,234 | $5,574 | | Ending Balance | $51,468 | $43,241 | $51,468 | $43,241 | [NOTE 4. COMMITMENTS AND CONTINGENCIES](index=19&type=section&id=NOTE%204.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's legal and regulatory matters, cybersecurity incident settlement, and unfunded lending commitments - The Company **accrued** **$0.5 million** for **pending legal and regulatory matters** as of September 30, 2025, and December 31, 2024, for which losses are probable and estimable[89](index=89&type=chunk) - **Progressive Leasing** received a request from the **FTC** in Q3 2024 to provide compliance evidence related to the **2020 FTC Settlement**, which the Company is cooperating with[91](index=91&type=chunk)[92](index=92&type=chunk) - A **cybersecurity incident** in Q3 2023 led to **consolidated lawsuits**, which were **settled for** **$3.3 million** on June 30, 2025, to be fully covered by **cybersecurity insurance**[94](index=94&type=chunk)[95](index=95&type=chunk) - **Unfunded lending commitments** for Vive totaled **$466.9 million** as of September 30, 2025, representing available unused credit lines, though not all are expected to be drawn upon[97](index=97&type=chunk) [NOTE 5. RESTRUCTURING EXPENSES](index=21&type=section&id=NOTE%205.%20RESTRUCTURING%20EXPENSES) This note details restructuring activities, expenses, and accrual balances related to severance and early contract termination costs - The Company incurred **no new restructuring activities** during the three and nine months ended September 30, 2025[100](index=100&type=chunk) - **Total restructuring expenses** for the nine months ended September 30, 2024, were **$20.9 million**, including **severance**, **ROU asset impairment**, **property and equipment impairment**, and **early contract termination costs**[100](index=100&type=chunk) Restructuring Accrual and Payment Activity (In Thousands): | Item | Balance at Dec 31, 2024 | Cash Payments (9M 2025) | Balance at Sep 30, 2025 | | :-------------------------- | :---------------------- | :---------------------- | :---------------------- | | Severance | $2,325 | $(864) | $1,461 | | Early Contract Termination Costs | $1,600 | $0 | $1,600 | | Total | $3,925 | $(864) | $3,061 | [NOTE 6. SEGMENTS](index=22&type=section&id=NOTE%206.%20SEGMENTS) This note presents financial information by reportable segment, including assets, capital expenditures, and earnings before income tax - As of September 30, 2025, the Company has two reportable segments: **Progressive Leasing** and **Vive**. **Four Technologies** is included in 'Other'[103](index=103&type=chunk)[106](index=106&type=chunk) - The **CODM (President and CEO)** evaluates segment performance based on **segment revenues and earnings (loss) before income tax**[107](index=107&type=chunk)[108](index=108&type=chunk) Total Assets by Segment (In Thousands): | Segment | September 30, 2025 | December 31, 2024 | | :-------------------------- | :----------------- | :----------------- | | Progressive Leasing | $1,309,703 | $1,282,585 | | Vive | $146,023 | $137,762 | | Other | $90,875 | $93,420 | | Total Assets | $1,546,601 | $1,513,767 | Capital Expenditures by Segment (In Thousands): | Segment | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Progressive Leasing | $2,886 | $1,330 | $5,451 | $3,985 | | Vive | $26 | $77 | $64 | $245 | | Other | $641 | $631 | $1,934 | $1,807 | | Total Capital Expenditures | $3,553 | $2,038 | $7,449 | $6,037 | Earnings (Loss) Before Income Tax by Segment (In Thousands): | Segment | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Progressive Leasing | $46,738 | $47,177 | $146,909 | $136,596 | | Vive | $(74) | $(1,441) | $(398) | $108 | | Other | $(1,017) | $(3,889) | $(1,058) | $(14,951) | | Total | $45,647 | $41,847 | $145,453 | $121,753 | [NOTE 7. INCOME TAXES](index=25&type=section&id=NOTE%207.%20INCOME%20TAXES) This note discusses the impact of recent tax legislation on deferred tax liabilities and income tax receivables - The United States enacted the **One Big Beautiful Bill Act (OBBBA)** on July 4, 2025, making **100% bonus depreciation permanent** for qualified property acquired after January 19, 2025[116](index=116&type=chunk) - As a result of **OBBBA**, the Company's **net deferred tax liability increased** by **$33.4 million** and **income tax receivable increased** by **$38.0 million**, with **no material impact expected on income tax expense**[116](index=116&type=chunk) [NOTE 8. SUBSEQUENT EVENT](index=26&type=section&id=NOTE%208.%20SUBSEQUENT%20EVENT) This note discloses the post-period sale of Vive's assets and its expected financial impact - On October 20, 2025, the Company completed the **sale of substantially all of Vive's assets**, primarily its **credit card receivable portfolio**, for an estimated **$149.0 million** cash[118](index=118&type=chunk) - The **Vive segment** will be presented as **discontinued operations** in the Company's consolidated financial statements starting in the quarter ending December 31, 2025[118](index=118&type=chunk) - The Company expects to recognize an **estimated pretax gain** of approximately **$30.0 million** from the sale in Q4 2025 and record **$3.0 million to $5.0 million** in **restructuring costs**[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition for the three and nine months ended September 30, 2025, compared to the prior year. It covers business overview, macroeconomic impacts, key financial highlights, operating metrics, and a detailed analysis of revenues, expenses, and liquidity, including the impact of the Vive asset sale. [Special Note Regarding Forward-Looking Information](index=27&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Information) This section provides a cautionary statement regarding forward-looking information and associated risks - The report contains **forward-looking statements** based on management's current expectations and plans, which involve **inherent risks and uncertainties**[122](index=122&type=chunk) - Readers are cautioned not to place undue reliance on these statements, as **actual results may differ materially** due to various factors, including those discussed in the **2024 Annual Report's 'Risk Factors' section**[122](index=122&type=chunk) [Business Overview](index=27&type=section&id=Business%20Overview) This section describes the company's business model and its reportable segments - **PROG Holdings** is a **financial technology holding company** offering transparent payment options, with two reportable segments: **Progressive Leasing** and **Vive Financial**[124](index=124&type=chunk) - **Progressive Leasing** provides **lease-purchase solutions** through POS partners, while **Vive Financial** offers **second-look revolving credit products**, though **Vive's assets** were sold post-period[125](index=125&type=chunk)[126](index=126&type=chunk) - **Four Technologies (BNPL)** and **Build (credit building tool)** are also part of **PROG Holdings'** ecosystem, with their financial results reported within the 'Other' category[127](index=127&type=chunk)[128](index=128&type=chunk) [Macroeconomic and Business Environment](index=28&type=section&id=Macroeconomic%20and%20Business%20Environment) This section discusses the macroeconomic factors and business environment impacting the company's performance - **Progressive Leasing's lease revenues increased** in H1 2025 due to a larger lease portfolio, but **Q3 2025 revenues were lower** due to a smaller **gross leased asset balance** compared to prior year[129](index=129&type=chunk) - The **bankruptcy of Big Lots** in late 2024 **negatively impacted Progressive Leasing's GMV, revenue, and earnings** in 2025[129](index=129&type=chunk) - **Elevated inflationary pressures**, **increased cost of living**, and **high interest rates** disproportionately affected the Company's customer base, leading to **decreased demand** and **unfavorable GMV and financial performance**[131](index=131&type=chunk) - **Progressive Leasing tightened its decisioning posture** in Q1 2025 due to **elevated customer payment delinquencies**, which **improved lease portfolio performance** but **unfavorably impacted GMV**[130](index=130&type=chunk) [Highlights](index=28&type=section&id=Highlights) This section summarizes key financial and operational highlights for the reporting period Financial Highlights (3 Months Ended Sep 30, 2025 vs. 2024): | Metric | 2025 (In Millions) | 2024 (In Millions) | Change ($) | Change (%) | | :-------------------------- | :----------------- | :----------------- | :--------- | :--------- | | Revenues | $595.1 | $606.1 | $(11.0) | (1.8)% | | Earnings Before Income Taxes | $45.6 | $41.8 | $3.8 | 9.1% | GMV Changes (3 Months Ended Sep 30, 2025 vs. 2024): | Segment | Change ($ In Millions) | | :-------------------------- | :--------------------- | | Progressive Leasing | $(45.7) | | Vive | $7.6 | | Other (Four) | $101.0 | - The **GMV decrease was attributed to the Big Lots bankruptcy and tighter decisioning**, while **Vive's GMV increased due to expanded loan origination programs**[132](index=132&type=chunk) - **Earnings before income taxes increased** primarily due to **higher revenues in 'Other' operations**, partially offset by **increased provision for loan losses** and **certain SG&A expenses**[132](index=132&type=chunk) [Key Operating Metrics](index=29&type=section&id=Key%20Operating%20Metrics) This section presents key operational metrics such as Gross Merchandise Volume and active customer count Gross Merchandise Volume (GMV) (In Thousands): | Segment | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :--------- | :--------- | | Progressive Leasing | $410,943 | $456,651 | $(45,708) | (10.0)% | | Vive | $46,308 | $38,755 | $7,553 | 19.5% | | Other | $163,086 | $62,058 | $101,028 | 162.8% | | Total GMV | $620,337 | $557,464 | $62,873 | 11.3% | - **Progressive Leasing's GMV decrease** was due to the **Big Lots bankruptcy**, **tighter decisioning**, and macroeconomic factors, while **e-commerce channels contributed 23.0% of its GMV in Q3 2025 (up from 16.6% in Q3 2024)**[134](index=134&type=chunk) - **GMV from 'Other' operations significantly increased by 162.8%** due to **growth in Four loan originations**[134](index=134&type=chunk) Active Customer Count (In Thousands, as of Sep 30): | Segment | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Progressive Leasing | 784 | 848 | | Vive | 96 | 91 | | Other | 338 | 148 | - **Progressive Leasing's active customer count decreased** due to **tighter decisioning** and the **Big Lots bankruptcy**, while **Vive and 'Other' (Four) saw increases** due to **loan originations and continued growth**[135](index=135&type=chunk) [Key Components of Earnings Before Income Tax](index=30&type=section&id=Key%20Components%20of%20Earnings%20Before%20Income%20Tax) This section outlines the primary revenue and expense components contributing to earnings before income tax - Revenues are categorized into **lease revenues and fees** (**Progressive Leasing**) and **interest and fees on loans receivable** (**Vive**, **Four**, and other strategic businesses)[137](index=137&type=chunk) - Key expense components include **depreciation of lease merchandise**, **provision for lease merchandise write-offs**, and **operating expenses** (personnel, loan losses, software, advertising, etc.)[138](index=138&type=chunk)[139](index=139&type=chunk) - **Interest expense, net**, covers **interest on Senior Notes and the Revolving Facility**, offset by **interest income from cash deposits**[140](index=140&type=chunk) [Results of Operations – Three months ended September 30, 2025 and 2024](index=31&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20months%20ended%20September%2030%2C%202025%20and%202024) This section analyzes the company's financial performance for the three months ended September 30, 2025, compared to the prior year Consolidated Results (In Thousands): | Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :--------- | :--------- | | Total Revenues | $595,108 | $606,145 | $(11,037) | (1.8)% | | Operating Profit | $53,529 | $49,231 | $4,298 | 8.7% | | Earnings Before Income Tax | $45,647 | $41,847 | $3,800 | 9.1% | | Net Earnings | $33,121 | $83,962 | $(50,841) | (60.6)% | - **Progressive Leasing revenues decreased by 4.5%** due to a smaller **gross leased asset balance**, **Big Lots bankruptcy**, and **tighter decisioning**, while **Vive revenues increased due to a larger loan portfolio**[143](index=143&type=chunk) - **Operating Expenses increased by 9.8%**, driven by a **$3.1 million** rise in **bank charges and processing fees** (due to **Four's GMV growth**) and a **$5.5 million** increase in **provision for loan losses** (also due to **Four's growth**)[142](index=142&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - **Income tax expense was $12.5 million** in Q3 2025, compared to a **benefit of $42.1 million** in Q3 2024, primarily due to a **$53.6 million non-cash reversal of an uncertain tax position in 2024**[151](index=151&type=chunk) [Results of Operations – Nine Months Ended September 30, 2025 and 2024](index=34&type=section&id=Results%20of%20Operations%20%E2%80%93%20Nine%20Months%20Ended%20September%2030%2C%202025%20and%202024) This section analyzes the company's financial performance for the nine months ended September 30, 2025, compared to the prior year Consolidated Results (In Thousands): | Metric | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :--------- | :--------- | | Total Revenues | $1,883,859 | $1,840,176 | $43,683 | 2.4% | | Operating Profit | $170,574 | $144,726 | $25,848 | 17.9% | | Earnings Before Income Tax | $145,453 | $121,753 | $23,700 | 19.5% | | Net Earnings | $106,322 | $139,702 | $(33,380) | (23.9)% | - **Progressive Leasing revenues increased slightly (0.2%)** due to a **larger lease portfolio entering 2025**, despite a **decrease in GMV during the period**[153](index=153&type=chunk) - **Operating Expenses increased by 3.2%**, driven by higher **professional services** (**$7.5 million**), **computer software expense** (**$3.7 million**), and **bank charges/processing fees** (**$7.6 million**), largely due to growth in **Four**[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - **Restructuring expense decreased by $20.9 million** as there were **no new activities in 2025**, compared to **significant charges in 2024**[160](index=160&type=chunk) - **Income tax expense was $39.1 million**, compared to a **benefit of $17.9 million** in the prior year, primarily due to the **2024 non-cash tax position reversal**[165](index=165&type=chunk) [Overview of Financial Position](index=37&type=section&id=Overview%20of%20Financial%20Position) This section provides a summary of the company's financial position, including changes in assets, liabilities, and equity - **Cash and cash equivalents increased by $196.9 million** to **$292.6 million** during the nine months ended September 30, 2025[166](index=166&type=chunk) - **Accounts receivable, net, decreased by $16.5 million**, and **lease merchandise, net, decreased by $179.1 million**, both primarily due to **lower Progressive Leasing GMV**[166](index=166&type=chunk) - **Deferred income tax liabilities increased by $31.4 million** and **income tax receivables increased by $38.0 million** due to the **permanent extension of 100% federal bonus depreciation by the OBBBA**[166](index=166&type=chunk) - **Debt, net, decreased by $49.0 million**, mainly from the **repayment of $50.0 million** on the **Revolving Facility**[166](index=166&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's capital requirements, financing sources, and liquidity position - **Primary capital requirements** include **reinvesting in the business (lease merchandise)**, **M&A**, and **returning excess cash to shareholders via repurchases and dividends**[171](index=171&type=chunk) - **Capital has been financed through cash flows from operations, private debt offerings, bank debt, and stock offerings**[171](index=171&type=chunk) - As of September 30, 2025, the Company had **$292.6 million** in cash, **$350.0 million** **available under the Revolving Facility** (**with no outstanding borrowings**), and **$600.0 million** in **gross indebtedness (Senior Notes)**[167](index=167&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk) - The Company **repurchased 1,835,792 shares for $51.8 million** during the nine months ended September 30, 2025, with **$309.6 million** **remaining authorization**[173](index=173&type=chunk) - **Quarterly cash dividends of $0.13 per share were declared**, **totaling $15.6 million** for the nine months ended September 30, 2025[174](index=174&type=chunk) - The **Revolving Facility matures on November 15, 2029**, and the **Senior Notes (6.00% fixed annual interest) mature on November 15, 2029**. The Company was **in compliance with all debt covenants**[175](index=175&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) - **Unfunded lending commitments for Vive totaled approximately $466.9 million** as of September 30, 2025, which are **unconditionally cancellable**[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's exposure to market risks, primarily interest rate risk. As of September 30, 2025, the company had no outstanding variable-rate debt, thus mitigating immediate interest rate sensitivity. The company does not use market risk sensitive instruments for hedging or speculative purposes. - As of September 30, 2025, the Company had **no outstanding borrowings under its Revolving Facility**, which is **indexed to SOFR or the prime rate**[188](index=188&type=chunk) - A **hypothetical 1.0% increase or decrease in interest rates would not affect interest expense** due to the **absence of variable-rate debt outstanding**[188](index=188&type=chunk) - The Company does not use **no significant market risk sensitive instruments for hedging commodity, foreign currency, or other risks**, nor does it **not hold them for trading or speculative purposes**[189](index=189&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures, which were deemed effective as of September 30, 2025. It also outlines changes in internal control over financial reporting related to the phased implementation of a new enterprise resource planning (ERP) system, which is expected to continue into 2026 and will involve ongoing modifications to internal controls. - The CEO and CFO concluded that the Company's **disclosure controls and procedures were effective** as of September 30, 2025, providing **reasonable assurance that disclosure objectives are met**[192](index=192&type=chunk) - The Company began utilizing aspects of a **new multi-phase ERP system** in Q3 2025, leading to **modifications, removals, and new designs of internal controls** to align with the new system[193](index=193&type=chunk) - Changes to internal control over financial reporting are expected to continue as the **ERP implementation progresses**, with **ongoing evaluation for material effects**[193](index=193&type=chunk)[194](index=194&type=chunk) PART II. OTHER INFORMATION This section provides additional disclosures including legal proceedings, risk factors, equity security sales, defaults, and exhibits [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 4 of the financial statements for details on legal and regulatory proceedings. The company does not currently believe that any outstanding legal proceedings will have a material adverse impact on its business, financial position, or results of operations, though an adverse resolution of multiple items could. - The Company is party to **various legal and regulatory proceedings** in the ordinary course of business[195](index=195&type=chunk) - **Management does not currently believe that any single outstanding legal proceeding will have a material adverse impact**, but acknowledges that an **adverse resolution of multiple items could**[195](index=195&type=chunk) - Further information on legal and regulatory proceedings is incorporated by reference from Note 4 to the condensed consolidated financial statements[195](index=195&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The Company reports no updates to its risk factors disclosure from its 2024 Annual Report. - There are **no updates to the risk factors disclosure previously reported in the 2024 Annual Report**[196](index=196&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or share repurchases during the three months ended September 30, 2025. - **No share repurchases or other unregistered sales of equity securities occurred** during the three months ended September 30, 2025[197](index=197&type=chunk) [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities. - There were **no defaults upon senior securities**[198](index=198&type=chunk) [Item 4. Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company. - This item is **not applicable**[199](index=199&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the three months ended September 30, 2025. - **No directors or executive officers adopted, modified, or terminated any Rule 10b5-1(c) trading arrangements** during the three months ended September 30, 2025[200](index=200&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications from the CEO and CFO, XBRL documents, and the Inline XBRL formatted cover page. - **Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer** (31.1, 31.2, 32.1, 32.2)[201](index=201&type=chunk) - **XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Labels Linkbase, and Presentation Linkbase Documents are included**[201](index=201&type=chunk) - The **cover page is formatted in Inline XBRL** (included in Exhibit 101)[201](index=201&type=chunk) [Signatures](index=45&type=section&id=Signatures) The report is duly signed on behalf of PROG Holdings, Inc. by the Chief Financial Officer, Brian Garner, and the Vice President, Financial Reporting, Matt Sewell, on October 22, 2025. - The report was **signed by Brian Garner, Chief Financial Officer, and Matt Sewell, Vice President, Financial Reporting**, on October 22, 2025[204](index=204&type=chunk)

Q3 2025 Financial Performance - Consolidated revenues reached $595.1 million[5], a decrease of 1.8% year-over-year, primarily due to a smaller lease portfolio, but this was partially offset by growth in Four Technologies[11, 12, 17] - Net earnings amounted to $33.1 million[5, 17] - Adjusted EBITDA stood at $67.0 million, with an adjusted EBITDA margin of 11.3% of PROG Holdings consolidated revenues[5, 11, 17] - Diluted EPS was $0.82, while Non-GAAP Diluted EPS reached $0.90, a 16.9% increase year-over-year[5, 11, 17] Progressive Leasing Segment - Progressive Leasing GMV totaled $410.9 million, a 10.0% decrease year-over-year due to a large national partner's bankruptcy and tighter decisioning[5, 14, 15, 18] - Progressive Leasing revenue was $556.6 million, a 4.5% decrease year-over-year[14, 15, 18] - Write-offs as a percentage of Progressive Leasing revenue were 7.4%, showing sequential and year-over-year improvement[14, 15, 18] - Progressive Leasing adjusted EBITDA was $64.5 million, representing 11.6% of Progressive Leasing revenues[18] Four Technologies - Four Technologies experienced GMV growth of 162.8% and achieved its third consecutive quarter of positive Adjusted EBITDA[5] 2025 Outlook - The company revised its full-year 2025 revenue outlook to $2.41 billion - $2.435 billion[21] - The company revised its full-year 2025 adjusted EBITDA outlook to $258 million - $265 million[21]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q3 2025 Overview](index=1&type=section&id=Q3%202025%20Overview) PROG Holdings reported Q3 2025 consolidated revenues of $595.1 million and net earnings of $33.1 million - **PROG Holdings, Inc. (NYSE:PRG)** announced financial results for the third quarter ended September 30, 2025[2](index=2&type=chunk) Q3 2025 Consolidated Financial Snapshot | Metric | Value | | :-------------------- | :------------ | | Consolidated Revenues | $595.1 million | | Net Earnings | $33.1 million | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Steve Michaels highlighted strong Progressive Leasing earnings, Four Technologies' triple-digit growth, and Vive's strategic sale for capital efficiency - Delivered strong earnings and expanded margins in the Progressive Leasing segment despite modest revenue headwinds[3](index=3&type=chunk) - Four Technologies achieved its **eighth consecutive quarter of triple-digit GMV and revenue growth**, validating its BNPL platform[3](index=3&type=chunk) - **The sale of Vive improves capital efficiency** and supports the capital allocation strategy[3](index=3&type=chunk) - **Strategic focus on a three-pillar strategy: Grow, Enhance, and Expand**, with investments in Progressive Leasing, PROG Marketplace, and Four Technologies[3](index=3&type=chunk) [Key Financial Highlights (Q3 2025)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Q3%202025%29) Q3 2025 key consolidated metrics included revenues of $595.1 million, net earnings of $33.1 million, and Adjusted EBITDA of $67.0 million Q3 2025 Key Financial Highlights | Metric | Value | | :-------------------------------- | :---------------- | | Consolidated Revenues | $595.1 million | | Net Earnings | $33.1 million | | Adjusted EBITDA | $67.0 million | | Diluted EPS | $0.82 | | Non-GAAP Diluted EPS | $0.90 | | Progressive Leasing GMV | $410.9 million | | Four Technologies GMV Growth | 162.8% | | Four Technologies Adjusted EBITDA | Positive (3rd consecutive quarter) | [Third Quarter 2025 Financial Results](index=2&type=section&id=Third%20Quarter%202025%20Financial%20Results) [Consolidated Results](index=2&type=section&id=Consolidated%20Results) Q3 2025 consolidated revenues decreased to $595.1 million, net earnings dropped to $33.1 million, while Adjusted EBITDA increased to $67.0 million Consolidated Financial Performance (Q3 2025 vs Q3 2024) | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Revenues | $595.1M | $606.1M | -1.8% | | Net Earnings | $33.1M | $84.0M | -60.6% | | Adjusted EBITDA | $67.0M | $63.5M | +5.5% | | Adjusted EBITDA % of Rev | 11.3% | 10.5% | +0.8 pp | | Diluted EPS | $0.82 | $1.94 | -57.7% | | Non-GAAP Diluted EPS | $0.90 | $0.77 | +16.9% | - The year-ago consolidated net earnings included a **$53.6 million non-cash, net tax benefit**[6](index=6&type=chunk) - The Company's diluted weighted average shares outstanding in the third quarter were **6.2% lower year-over-year**[7](index=7&type=chunk) [Progressive Leasing Results](index=2&type=section&id=Progressive%20Leasing%20Results) Progressive Leasing's Q3 2025 GMV was $410.9 million, a 10.0% decrease, with write-offs at 7.4% of leasing revenues Progressive Leasing Q3 2025 Performance | Metric | Value | | :-------------------------------- | :------------ | | GMV | $410.9 million | | YoY GMV Change | -10.0% | | Provision for Lease Merchandise Write-offs | 7.4% of leasing revenues (within 6-8% target) | [Liquidity and Capital Allocation](index=2&type=section&id=Liquidity%20and%20Capital%20Allocation) PROG Holdings maintained a strong financial position with $292.6 million in cash and $600.0 million in gross debt as of Q3 2025 Liquidity and Capital Allocation (Q3 2025 End) | Metric | Value | | :-------------------------- | :------------ | | Cash | $292.6 million | | Gross Debt | $600.0 million | | Share Repurchase Capacity | $309.6 million (under $500M program) | | Quarterly Cash Dividend | $0.13 per share | [2025 Outlook](index=3&type=section&id=2025%20Outlook) [Overview and Assumptions](index=3&type=section&id=Overview%20and%20Assumptions) PROG Holdings provided Q4 and full-year 2025 outlook, excluding Vive, assuming a challenging operating environment and 27% tax rate - **Vive segment excluded from outlook** and will be presented as **discontinued operations beginning in Q4 2025** due to the sale of its credit card portfolio[10](index=10&type=chunk) - Outlook assumes a **difficult operating environment with soft demand for consumer durable goods**[10](index=10&type=chunk) - Assumes **no material changes in the Company's current decisioning posture** and an **effective tax rate for Non-GAAP EPS of approximately 27%**[10](index=10&type=chunk) [Full Year and Fourth Quarter 2025 Outlook Metrics](index=3&type=section&id=Full%20Year%20and%20Fourth%20Quarter%202025%20Outlook%20Metrics) Full-year 2025 outlook revised with lower revenue but higher net earnings; Q4 projects $575-590 million in revenues Revised vs. Previous Full Year 2025 Outlook (Continuing Operations) | Metric | Revised Low | Revised High | Previous Low | Previous High | | :------------------------------------ | :---------- | :----------- | :----------- | :------------ | | Total Revenues | $2,410,000 | $2,435,000 | $2,450,000 | $2,500,000 | | Net Earnings from Continuing Operations | $124,300 | $128,800 | $120,000 | $125,000 | | Adjusted EBITDA | $258,000 | $265,000 | $255,000 | $265,000 | | Diluted EPS from Continuing Operations | $3.06 | $3.16 | $2.91 | $3.06 | | Diluted Non-GAAP EPS from Continuing Operations | $3.35 | $3.45 | $3.20 | $3.35 | Three Months Ended December 31, 2025 Outlook (Continuing Operations) | Metric | Low | High | | :------------------------------------ | :-------- | :-------- | | Total Revenues | $575,000 | $590,000 | | Net Earnings from Continuing Operations | $17,000 | $24,000 | | Adjusted EBITDA | $47,000 | $54,000 | | Diluted EPS from Continuing Operations | $0.47 | $0.57 | | Diluted Non-GAAP EPS from Continuing Operations | $0.55 | $0.65 | [Company Information](index=4&type=section&id=Company%20Information) [About PROG Holdings, Inc.](index=4&type=section&id=About%20PROG%20Holdings%2C%20Inc.) PROG Holdings, Inc. is a Salt Lake City-based fintech holding company offering lease-to-own, BNPL, and credit building products - **PROG Holdings, Inc. (NYSE:PRG)** is a **fintech holding company headquartered in Salt Lake City, UT**[13](index=13&type=chunk) - The Company owns **Progressive Leasing (lease-to-own)**, **Four Technologies (Buy Now, Pay Later)**, and **Build (personal credit building products)**[13](index=13&type=chunk) [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) A webcast and conference call was scheduled for October 22, 2025, at 8:30 A.M. ET to discuss Q3 2025 financial results - A live webcast and conference call was scheduled for **Wednesday, October 22, 2025, at 8:30 A.M. ET** to discuss Q3 2025 financial results[12](index=12&type=chunk) - The webcast can be accessed on the **Events and Presentations page of the Company's Investor Relations website**[12](index=12&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) Forward-looking statements involve risks including macroeconomic volatility, consumer demand, retail partner reliance, and regulatory compliance - Statements, estimates, and projections in this press release are **'forward-looking statements' subject to risks and uncertainties**[14](index=14&type=chunk) - Risks include **continued volatility in the macroeconomic environment**, **impact on consumer demand and disposable income**, **reliance on key retail partners**, and the **inability to attract new retail partners or customers**[14](index=14&type=chunk) - Further risks involve **business model differences for Vive and Four**, **modernization of IT systems**, **intense competition**, **maintaining consumer satisfaction**, **extensive federal/state/local laws and regulations**, **negative characterization of transactions**, **cybersecurity incidents**, and the **effectiveness of capital allocation strategy**[14](index=14&type=chunk)[15](index=15&type=chunk) [Investor Relations Contact](index=5&type=section&id=Investor%20Relations%20Contact) John A. Baugh, CFA, Vice President of Investor Relations, is the contact for investor inquiries - Investor Contact: **John A. Baugh, CFA, Vice President, Investor Relations**[16](index=16&type=chunk) [Financial Statements (GAAP)](index=6&type=section&id=Financial%20Statements%20%28GAAP%29) [Consolidated Statements of Earnings](index=6&type=section&id=Consolidated%20Statements%20of%20Earnings) Consolidated statements of earnings show Q3 2025 revenues of $595.1 million and net earnings of $33.1 million Consolidated Statements of Earnings (Three Months Ended September 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Lease Revenues and Fees | $556,583 | $582,551 | | Interest and Fees on Loans Receivable | $38,525 | $23,594 | | Total Revenues | $595,108 | $606,145 | | Operating Profit | $53,529 | $49,231 | | Net Earnings | $33,121 | $83,962 | | Diluted EPS | $0.82 | $1.94 | Consolidated Statements of Earnings (Nine Months Ended September 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Lease Revenues and Fees | $1,777,814 | $1,773,617 | | Interest and Fees on Loans Receivable | $106,045 | $66,559 | | Total Revenues | $1,883,859 | $1,840,176 | | Operating Profit | $170,574 | $144,726 | | Net Earnings | $106,322 | $139,702 | | Diluted EPS | $2.60 | $3.19 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show total assets increased to $1,546.6 million, with higher cash and equity, and lower liabilities Consolidated Balance Sheet (September 30, 2025 vs. December 31, 2024) | Metric | Sep 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :------------------------------------ | :-------------------------- | :-------------------------- | | Cash and Cash Equivalents | $292,610 | $95,655 | | Lease Merchandise (net) | $501,152 | $680,242 | | Loans Receivable (net) | $160,350 | $146,985 | | Total Assets | $1,546,601 | $1,513,767 | | Debt, Net | $594,537 | $643,563 | | Total Liabilities | $843,044 | $863,486 | | Total Shareholders' Equity | $703,557 | $650,281 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash provided by operating activities significantly increased to $389.9 million for the nine months ended September 30, 2025 Consolidated Statements of Cash Flows (Nine Months Ended September 30) | Activity | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Cash Provided by Operating Activities | $389,865 | $223,013 | | Cash Used in Investing Activities | $(69,041) | $(35,648) | | Cash Used in Financing Activities | $(123,869) | $(121,055) | | Increase in Cash and Cash Equivalents | $196,955 | $66,310 | | Cash and Cash Equivalents at End of Period | $292,610 | $221,726 | [Segment Performance (GAAP)](index=9&type=section&id=Segment%20Performance%20%28GAAP%29) [Quarterly Revenues by Segment](index=9&type=section&id=Quarterly%20Revenues%20by%20Segment) Q3 2025 consolidated revenue was $595.1 million, with Progressive Leasing contributing $556.6 million, a slight decrease from Q3 2024 Quarterly Revenues by Segment (Three Months Ended September 30, 2025) | Segment | Lease Revenues and Fees (in thousands) | Interest and Fees on Loans Receivable (in thousands) | Total Revenues (in thousands) | | :------------------ | :----------------------------------- | :------------------------------------------------- | :---------------------------- | | Progressive Leasing | $556,583 | — | $556,583 | | Vive | — | $17,402 | $17,402 | | Other | — | $21,123 | $21,123 | | **Consolidated Total** | **$556,583** | **$38,525** | **$595,108** | Quarterly Revenues by Segment (Three Months Ended September 30, 2024) | Segment | Lease Revenues and Fees (in thousands) | Interest and Fees on Loans Receivable (in thousands) | Total Revenues (in thousands) | | :------------------ | :----------------------------------- | :------------------------------------------------- | :---------------------------- | | Progressive Leasing | $582,551 | — | $582,551 | | Vive | — | $16,000 | $16,000 | | Other | — | $7,594 | $7,594 | | **Consolidated Total** | **$582,551** | **$23,594** | **$606,145** | [Nine Month Revenues by Segment](index=10&type=section&id=Nine%20Month%20Revenues%20by%20Segment) Nine-month consolidated revenues reached $1,883.9 million, driven by Progressive Leasing, Vive, and Other segments Nine Month Revenues by Segment (Nine Months Ended September 30, 2025) | Segment | Lease Revenues and Fees (in thousands) | Interest and Fees on Loans Receivable (in thousands) | Total Revenues (in thousands) | | :------------------ | :----------------------------------- | :------------------------------------------------- | :---------------------------- | | Progressive Leasing | $1,777,814 | — | $1,777,814 | | Vive | — | $49,221 | $49,221 | | Other | — | $56,824 | $56,824 | | **Consolidated Total** | **$1,777,814** | **$106,045** | **$1,883,859** | Nine Month Revenues by Segment (Nine Months Ended September 30, 2024) | Segment | Lease Revenues and Fees (in thousands) | Interest and Fees on Loans Receivable (in thousands) | Total Revenues (in thousands) | | :------------------ | :----------------------------------- | :------------------------------------------------- | :---------------------------- | | Progressive Leasing | $1,773,617 | — | $1,773,617 | | Vive | — | $47,471 | $47,471 | | Other | — | $19,088 | $19,088 | | **Consolidated Total** | **$1,773,617** | **$66,559** | **$1,840,176** | [Quarterly Gross Merchandise Volume by Segment](index=11&type=section&id=Quarterly%20Gross%20Merchandise%20Volume%20by%20Segment) Q3 2025 total GMV increased to $620.3 million, primarily due to growth in Vive and Other segments, offsetting Progressive Leasing's decline Quarterly Gross Merchandise Volume by Segment (Three Months Ended September 30) | Segment | 2025 (in thousands) | 2024 (in thousands) | | :------------------ | :------------------ | :------------------ | | Progressive Leasing | $410,943 | $456,651 | | Vive | $46,308 | $38,755 | | Other | $163,086 | $62,058 | | **Total GMV** | **$620,337** | **$557,464** | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) [Use and Definition of Non-GAAP Financial Information](index=12&type=section&id=Use%20and%20Definition%20of%20Non-GAAP%20Financial%20Information) PROG Holdings uses Non-GAAP measures like Adjusted EBITDA and diluted EPS, excluding specific items, for supplemental performance insights - Non-GAAP net earnings, diluted EPS, and Adjusted EBITDA are supplemental measures not calculated in accordance with GAAP[29](index=29&type=chunk) - Exclusions for Non-GAAP outlook include **Vive operations** and gain on sale of its credit card portfolio[29](index=29&type=chunk)[30](index=30&type=chunk) - Historical Non-GAAP adjustments include intangible amortization, transaction costs, restructuring expenses, cybersecurity incident costs, and certain tax benefits/accrued interest[29](index=29&type=chunk)[30](index=30&type=chunk) - Management believes these measures provide relevant and useful information for assessing performance and are widely used by analysts, investors, and competitors[31](index=31&type=chunk)[32](index=32&type=chunk) - Non-GAAP measures should not be used as a substitute for GAAP measures and may not be comparable to similar measures disclosed by other companies[33](index=33&type=chunk) [Reconciliation of Net Earnings and Diluted EPS to Non-GAAP](index=14&type=section&id=Reconciliation%20of%20Net%20Earnings%20and%20Diluted%20EPS%20to%20Non-GAAP) Reconciliation details GAAP to Non-GAAP net earnings and diluted EPS, adjusting for amortization, transaction costs, and other items Reconciliation of Net Earnings to Non-GAAP Net Earnings (Three Months Ended September 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :------------------------------------ | :------------------ | :------------------ | | Net Earnings (GAAP) | $33,121 | $83,962 | | Add: Intangible Amortization Expense | $3,999 | $4,000 | | Add: Transaction Costs | $200 | — | | Add: Restructuring Expense | — | $6 | | Add: Costs Related to Cybersecurity Incident | $58 | $114 | | Less: Tax Impact of Adjustments | $(1,107) | $(1,071) | | Less: Reversal of Uncertain Tax Position | — | $(53,599) | | **Non-GAAP Net Earnings** | **$36,271** | **$33,412** | Reconciliation of Diluted EPS to Non-GAAP Diluted EPS (Three Months Ended September 30) | Metric | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Diluted EPS (GAAP) | $0.82 | $1.94 | | Add: Intangible Amortization Expense | $0.10 | $0.09 | | Add: Transaction Costs | — | — | | Add: Restructuring Expense | — | — | | Add: Costs Related to Cybersecurity Incident | — | — | | Less: Tax Impact of Adjustments | $(0.03) | $(0.02) | | Less: Reversal of Uncertain Tax Position | — | $(1.24) | | **Non-GAAP Diluted EPS** | **$0.90** | **$0.77** | [Quarterly Segment Adjusted EBITDA](index=15&type=section&id=Quarterly%20Segment%20Adjusted%20EBITDA) Quarterly segment Adjusted EBITDA reconciliation shows consolidated Adjusted EBITDA of $67.0 million in Q3 2025, up from $63.5 million Quarterly Segment Adjusted EBITDA (Three Months Ended September 30, 2025) | Segment | Progressive Leasing (in thousands) | Vive (in thousands) | Other (in thousands) | Consolidated Total (in thousands) | | :------------------------------------ | :------------------------------- | :------------------ | :------------------- | :-------------------------------- | | Earnings (Loss) Before Income Tax | $46,738 | $(74) | $(1,017) | $45,647 | | EBITDA | $57,775 | $333 | $1,563 | $59,671 | | Stock-Based Compensation | $6,638 | $47 | $412 | $7,097 | | Costs Related to Cybersecurity Incident | $58 | — | — | $58 | | Transaction Costs | — | $200 | — | $200 | | **Adjusted EBITDA** | **$64,471** | **$580** | **$1,975** | **$67,026** | Quarterly Segment Adjusted EBITDA (Three Months Ended September 30, 2024) | Segment | Progressive Leasing (in thousands) | Vive (in thousands) | Other (in thousands) | Consolidated Total (in thousands) | | :------------------------------------ | :------------------------------- | :------------------ | :------------------- | :-------------------------------- | | Earnings (Loss) Before Income Tax | $47,177 | $(1,441) | $(3,889) | $41,847 | | EBITDA | $60,267 | $(1,286) | $(3,485) | $55,496 | | Stock-Based Compensation | $6,059 | $354 | $1,438 | $7,851 | | Restructuring Expense | $6 | — | — | $6 | | Costs Related to Cybersecurity Incident | $114 | — | — | $114 | | **Adjusted EBITDA** | **$66,446** | **$(932)** | **$(2,047)** | **$63,467** | [Nine Month Segment Adjusted EBITDA](index=16&type=section&id=Nine%20Month%20Segment%20Adjusted%20EBITDA) Nine-month segment Adjusted EBITDA reconciliation shows consolidated Adjusted EBITDA of $210.8 million, an increase from prior year Nine Month Segment Adjusted EBITDA (Nine Months Ended September 30, 2025) | Segment | Progressive Leasing (in thousands) | Vive (in thousands) | Other (in thousands) | Consolidated Total (in thousands) | | :------------------------------------ | :------------------------------- | :------------------ | :------------------- | :-------------------------------- | | Earnings (Loss) Before Income Tax | $146,909 | $(398) | $(1,058) | $145,453 | | EBITDA | $181,733 | $660 | $6,434 | $188,827 | | Stock-Based Compensation | $19,510 | $253 | $1,870 | $21,633 | | Costs Related to Cybersecurity Incident | $167 | — | — | $167 | | Transaction Costs | — | $200 | — | $200 | | **Adjusted EBITDA** | **$201,410** | **$1,113** | **$8,304** | **$210,827** | Nine Month Segment Adjusted EBITDA (Nine Months Ended September 30, 2024) | Segment | Progressive Leasing (in thousands) | Vive (in thousands) | Other (in thousands) | Consolidated Total (in thousands) | | :------------------------------------ | :------------------------------- | :------------------ | :------------------- | :-------------------------------- | | Earnings (Loss) Before Income Tax | $136,596 | $108 | $(14,951) | $121,753 | | EBITDA | $178,799 | $595 | $(13,888) | $165,506 | | Stock-Based Compensation | $16,905 | $1,052 | $3,631 | $21,588 | | Restructuring Expense | $18,278 | — | $2,628 | $20,906 | | Costs Related to Cybersecurity Incident | $346 | — | — | $346 | | **Adjusted EBITDA** | **$214,328** | **$1,647** | **$(7,629)** | **$208,346** | [Non-GAAP Outlook Reconciliations](index=17&type=section&id=Non-GAAP%20Outlook%20Reconciliations) [Full Year 2025 Outlook for Adjusted EBITDA](index=17&type=section&id=Full%20Year%202025%20Outlook%20for%20Adjusted%20EBITDA) Revised full-year 2025 Adjusted EBITDA outlook is $258.0 million to $265.0 million, reconciling net earnings with various adjustments Revised Fiscal Year 2025 Outlook for Adjusted EBITDA (Continuing Operations) | Metric | Progressive Leasing (in thousands) | Other (in thousands) | Consolidated Total (in thousands) | | :------------------------------------ | :------------------------------- | :------------------- | :-------------------------------- | | Estimated Net Earnings from Continuing Operations | | | $124,300 - $128,800 | | Projected Adjusted EBITDA | $256,000 - $261,000 | $2,000 - $4,000 | $258,000 - $265,000 | Previous Fiscal Year 2025 Outlook for Adjusted EBITDA | Metric | Progressive Leasing (in thousands) | Vive (in thousands) | Other (in thousands) | Consolidated Total (in thousands) | | :------------------------------------ | :------------------------------- | :------------------ | :------------------- | :-------------------------------- | | Estimated Net Earnings | | | | $120,000 - $125,000 | | Projected Adjusted EBITDA | $255,000 - $261,000 | $(2,500) - $(1,000) | $2,500 - $5,000 | $255,000 - $265,000 | [Fourth Quarter 2025 Outlook for Adjusted EBITDA](index=18&type=section&id=Fourth%20Quarter%202025%20Outlook%20for%20Adjusted%20EBITDA) Q4 2025 outlook projects consolidated Adjusted EBITDA between $47.0 million and $54.0 million, based on estimated net earnings Three Months Ended December 31, 2025 Outlook for Adjusted EBITDA (Consolidated Total) | Metric | Low (in thousands) | High (in thousands) | | :------------------------------------ | :----------------- | :----------------- | | Estimated Net Earnings from Continuing Operations | $17,000 | $24,000 | | Projected Adjusted EBITDA | $47,000 | $54,000 | [Full Year 2025 Outlook for Diluted EPS](index=19&type=section&id=Full%20Year%202025%20Outlook%20for%20Diluted%20EPS) Revised full-year 2025 Non-GAAP diluted EPS outlook is $3.35 to $3.45, adjusting GAAP EPS for amortization and tax effects Revised Full Year 2025 Outlook for Diluted EPS to Non-GAAP Diluted EPS (Continuing Operations) | Metric | Low | High | | :------------------------------------------------------ | :--- | :--- | | Projected Diluted Earnings Per Share from Continuing Operations (GAAP) | $3.06 | $3.16 | | Add: Projected Intangible Amortization Expense | $0.39 | $0.39 | | Subtract: Tax Effect on Non-GAAP Adjustments | $(0.10) | $(0.10) | | **Projected Non-GAAP Diluted Earnings Per Share from Continuing Operations** | **$3.35** | **$3.45** | Previous Full Year 2025 Outlook for Diluted EPS to Non-GAAP Diluted EPS | Metric | Low | High | | :------------------------------------ | :--- | :--- | | Projected Diluted Earnings Per Share (GAAP) | $2.91 | $3.06 | | Add: Projected Intangible Amortization Expense | $0.39 | $0.39 | | Subtract: Tax Effect on Non-GAAP Adjustments | $(0.10) | $(0.10) | | **Projected Non-GAAP Diluted Earnings Per Share** | **$3.20** | **$3.35** | [Fourth Quarter 2025 Outlook for Diluted EPS](index=20&type=section&id=Fourth%20Quarter%202025%20Outlook%20for%20Diluted%20EPS) Q4 2025 Non-GAAP diluted EPS outlook is $0.55 to $0.65, adjusting GAAP EPS for amortization and tax effects Three Months Ended December 31, 2025 Outlook for Diluted EPS to Non-GAAP Diluted EPS (Continuing Operations) | Metric | Low | High | | :------------------------------------------------------ | :--- | :--- | | Projected Diluted Earnings Per Share from Continuing Operations (GAAP) | $0.47 | $0.57 | | Add: Projected Intangible Amortization Expense | $0.10 | $0.10 | | Subtract: Tax Effect on Non-GAAP Adjustments | $(0.03) | $(0.03) | | **Projected Non-GAAP Diluted Earnings Per Share from Continuing Operations** | **$0.55** | **$0.65** |

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