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PROG Holdings (PRG) came out with quarterly earnings of $1.02 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +29.11%. A quarter ago, it was expected that this rent- to-own company would post earnings of $0.82 per share when it actually produced earnings of $0.9, delivering a surprise of +9.76%. Over the last four quarters, ...

Financial Data and Key Metrics Changes - Non-GAAP EPS for Q2 was $1.02, significantly exceeding the outlook range of $0.75 to $0.85 per share [5][20] - Consolidated revenue reached $604.7 million, reflecting low single-digit growth year-over-year [7][27] - Consolidated adjusted EBITDA was $73.5 million, slightly up from $72.3 million in Q2 of the previous year [8][27] Business Line Data and Key Metrics Changes - Progressive Leasing's GMV was $413.9 million, down 8.9% year-over-year, primarily due to the Big Lots bankruptcy and tightening of approval rates [21][22] - Four Technologies delivered over 200% revenue growth, contributing significantly to overall performance [8][27] - Write-offs for Q2 were 7.5%, which is 20 basis points better than the previous year, indicating effective portfolio management [9][25] Market Data and Key Metrics Changes - E-commerce represented approximately 21% of total leasing GMV, marking an all-time high for Progressive Leasing [10] - Millennials and Gen Z account for about 70% of GMV, highlighting a shift in customer demographics [24] Company Strategy and Development Direction - The company is focused on improving results through pipeline opportunities, online platform expansion, and enhancing customer experiences [5][11] - Strategic pillars include growth, enhancement of technology, and expansion of services, with a commitment to sustainable unit economics [11][13] - The company is exploring strategic M&A opportunities while maintaining a balanced approach to capital returns [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing softness in demand for consumer durable goods but expressed confidence in the ability to gain market share and drive sustainable growth [18][30] - The outlook for 2025 includes consolidated revenues projected between $2.45 billion and $2.5 billion, with adjusted EBITDA between $255 million and $265 million [30][31] Other Important Information - The company ended Q2 with $222 million in cash and $600 million in gross debt, resulting in a net leverage ratio of 1.38x [27][28] - The recent legislative changes are expected to positively impact cash tax outlook by allowing immediate expensing of lease merchandise [28] Q&A Session Summary Question: What is the underlying growth considering the Big Lots bankruptcy and underwriting tightening? - Management indicated that excluding Big Lots, GMV would have been up approximately 1%, and the tightening actions contributed an additional 800 to 900 basis points drag on GMV [34][36] Question: What is the outlook for the pipeline with retailers? - Management noted increased engagement with retailers, including RFIs and RFPs, indicating a positive trend in considering leasing products [44] Question: What factors influenced the guidance update for the second half of the year? - Management highlighted that while write-offs were lower than anticipated, the impact of Big Lots and portfolio size would create headwinds in the back half of the year [60][62] Question: How is the company leveraging its customer database for growth? - Management stated that there are synergies between the leasing business and the four platform, with initiatives in place to drive customer acquisition and engagement [76][78] Question: What is the competitive landscape for the subscription product in the BNPL space? - Management acknowledged strong competition but expressed confidence in the value proposition of their four plus subscription service, which has seen robust adoption [94][95]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended June 30, 2025, show a decrease in total assets to $1.45 billion, driven by lower lease merchandise balances. Net earnings for the first six months increased to $73.2 million from $55.7 million year-over-year, with diluted EPS rising to $1.78 from $1.26. Cash from operations significantly increased to $279.8 million, contributing to a higher cash balance of $222.0 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $1.45 billion, a decrease from $1.51 billion at year-end 2024, primarily due to a reduction in Lease Merchandise. Cash and cash equivalents more than doubled to $222.0 million. Total liabilities decreased to $785.9 million, mainly from debt repayment, while total shareholders' equity increased to $668.7 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | $222,027 | $95,655 | | Lease Merchandise, Net | $526,303 | $680,242 | | Total Assets | $1,454,596 | $1,513,767 | | **Liabilities & Equity** | | | | Debt, Net | $594,212 | $643,563 | | Total Liabilities | $785,923 | $863,486 | | Total Shareholders' Equity | $668,673 | $650,281 | [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) For the second quarter of 2025, the company reported net earnings of $38.5 million, or $0.95 per diluted share, compared to $33.8 million, or $0.77 per diluted share, in Q2 2024. For the six months ended June 30, 2025, net earnings were $73.2 million, a significant increase from $55.7 million in the prior-year period, driven by higher total revenues and controlled expenses Key Earnings Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $604,663 | $592,161 | $1,288,751 | $1,234,031 | | Operating Profit | $60,724 | $55,678 | $117,045 | $95,495 | | Net Earnings | $38,483 | $33,774 | $73,201 | $55,740 | | Diluted EPS | $0.95 | $0.77 | $1.78 | $1.26 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash provided by operating activities increased to $279.8 million from $191.1 million in the prior year. Cash used in investing activities was $34.8 million, primarily for investments in loans receivable. Financing activities used $118.7 million, mainly for debt repayment ($50.0 million) and share repurchases ($51.8 million). The period ended with a net increase in cash of $126.4 million Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $279,820 | $191,127 | | Cash Used in Investing Activities | ($34,789) | ($17,822) | | Cash Used in Financing Activities | ($118,659) | ($78,587) | | **Increase in Cash and Cash Equivalents** | **$126,372** | **$94,718** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business structure, comprising Progressive Leasing (lease-to-own), Vive Financial (second-look credit), and Four (BNPL). Key disclosures include segment performance, where Progressive Leasing remains the largest contributor to revenue and profit. The company settled a cybersecurity lawsuit for $3.3 million, fully covered by insurance, and is cooperating with an FTC inquiry. A subsequent event notes the enactment of a law making 100% bonus depreciation permanent, which is expected to reduce future cash taxes - The company operates through two main reportable segments: Progressive Leasing (point-of-sale lease-to-own) and Vive Financial (second-look revolving credit). It also includes Four Technologies, a Buy Now, Pay Later (BNPL) company[15](index=15&type=chunk) - For a 2023 cybersecurity incident, the company reached a settlement of **$3.3 million**, which will be fully paid by its cybersecurity insurance[89](index=89&type=chunk) - In Q3 2024, the FTC requested information to evidence compliance with a 2020 settlement. The company is fully cooperating with this request[86](index=86&type=chunk) - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, making **100% bonus depreciation permanent**, which is expected to reduce the company's cash paid for taxes[109](index=109&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a challenging macroeconomic environment, including the impact of the Big Lots bankruptcy and inflationary pressures on consumers. Despite this, Q2 2025 revenues grew 2.1% to $604.7 million. Gross Merchandise Volume (GMV) for the core Progressive Leasing segment declined 8.9%, but this was offset by strong growth in the Vive (+23.0%) and Other (+166.5%) segments. The company improved its cash position significantly, ending the period with $222.0 million in cash after repaying debt, buying back shares, and paying dividends [Business and Macroeconomic Overview](index=24&type=section&id=Business%20and%20Macroeconomic%20Overview) The company operates in a challenging macroeconomic environment marked by inflation and high living costs. The bankruptcy of major POS partner Big Lots in late 2024 negatively impacted Progressive Leasing's GMV. In response to elevated delinquencies, the company tightened its decisioning, which improved portfolio health but constrained GMV growth in the first half of 2025 - The company is facing a challenging macroeconomic environment, with the bankruptcy of Big Lots, a major POS partner, unfavorably impacting GMV, revenue, and earnings in H1 2025[117](index=117&type=chunk) - The company tightened its decisioning posture in early 2025 to manage elevated customer delinquencies, which benefited portfolio performance but had an unfavorable impact on GMV[118](index=118&type=chunk) [Key Operating Metrics](index=26&type=section&id=Key%20Operating%20Metrics) In Q2 2025, total Gross Merchandise Volume (GMV) increased 11.2% year-over-year to $607.5 million. This was driven by a 23.0% increase in Vive's GMV and a 166.5% surge in the 'Other' category (primarily Four), which offset an 8.9% decline in the Progressive Leasing segment. The active customer count for Progressive Leasing decreased, while Vive and 'Other' saw increases Gross Merchandise Volume (GMV) - Q2 (in thousands) | Segment | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Progressive Leasing | $413,872 | $454,508 | (8.9)% | | Vive | $43,990 | $35,757 | 23.0% | | Other | $149,632 | $56,139 | 166.5% | | **Total GMV** | **$607,494** | **$546,404** | **11.2%** | Active Customer Count (in thousands) | Segment | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Progressive Leasing | 802 | 834 | | Vive | 93 | 85 | | Other | 271 | 127 | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) For Q2 2025, total revenues increased 2.1% to $604.7 million, and net earnings rose 13.9% to $38.5 million. For the first six months, revenues grew 4.4% to $1.29 billion, and net earnings increased 31.3% to $73.2 million. The growth was driven by the Vive and Other segments. A key factor in improved profitability was the absence of restructuring expenses, which totaled $20.9 million in the first half of 2024 Consolidated Results - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $1,288,751 | $1,234,031 | 4.4% | | Operating Profit | $117,045 | $95,495 | 22.6% | | Net Earnings | $73,201 | $55,740 | 31.3% | - Restructuring expenses were **zero in H1 2025**, compared to **$20.9 million in H1 2024**, significantly contributing to the increase in operating profit[149](index=149&type=chunk) - The provision for loan losses increased by **$8.7 million in H1 2025** compared to H1 2024, primarily due to the growth of the Four (BNPL) and Vive businesses[147](index=147&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company's financial position strengthened, with cash increasing by $126.3 million to $222.0 million in the first half of 2025. This was supported by strong operating cash flow of $279.8 million. Capital was deployed for a $50.0 million repayment on the revolving facility, $51.8 million in share repurchases, and $10.4 million in dividends. As of June 30, 2025, the company had $350.0 million available under its revolving credit facility and was in compliance with all debt covenants - Cash and cash equivalents increased by **$126.3 million** during the first six months of 2025, reaching **$222.0 million**[155](index=155&type=chunk) - During H1 2025, the company used cash for a **$50.0 million repayment** of its revolving facility, **$51.8 million for share repurchases**, and **$10.4 million for dividends**[159](index=159&type=chunk) - As of June 30, 2025, the company had **$600.0 million in gross indebtedness** from Senior Notes and **$350.0 million of availability** under its undrawn Revolving Facility[156](index=156&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports minimal market risk. As of June 30, 2025, there were no outstanding borrowings under its variable-rate Revolving Facility, thus a hypothetical 1.0% change in interest rates would not affect interest expense. The company does not use significant market risk sensitive instruments for hedging purposes - As of June 30, 2025, the company had no outstanding borrowings under its variable-rate Revolving Facility, exposing it to minimal interest rate risk[177](index=177&type=chunk) - The company does not use any significant market risk sensitive instruments for hedging or speculative purposes[178](index=178&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025. The company has begun a multi-phase implementation of a new enterprise resource planning (ERP) system, which has led to modifications and the implementation of new internal controls over financial reporting. No other material changes to internal controls were reported for the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[181](index=181&type=chunk) - The company is implementing a new enterprise resource planning (ERP) system, which has resulted in changes to its internal control over financial reporting[182](index=182&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to various legal proceedings arising in the ordinary course of business. It does not believe any outstanding proceedings will have a material adverse impact. Further details are provided in Note 4 of the financial statements - 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. For more details, see Note 4[184](index=184&type=chunk) [Risk Factors](index=39&type=page&id=Item%201A.%20Risk%20Factors) There are no updates to the company's risk factors from those previously disclosed in the 2024 Annual Report on Form 10-K - The company reported no updates to its risk factors from the 2024 Annual Report[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2025, the company repurchased 899,800 shares of its common stock at an average price that can be inferred from the monthly data. As of June 30, 2025, approximately $309.6 million remained available for future repurchases under the board's authorization Share Repurchase Activity - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 100,000 | $25.87 | | May 2025 | 525,000 | $28.57 | | June 2025 | 274,800 | $29.36 | | **Total** | **899,800** | **N/A** | - As of June 30, 2025, the maximum dollar value of shares that may yet be purchased under the plan is **$309,573,987**[186](index=186&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, no directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading plans or any other non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted, modified, or terminated any Rule 10b5-1(c) trading plans during the three months ended June 30, 2025[189](index=189&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act, and the XBRL data files - Filed exhibits include CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act, as well as XBRL data files[190](index=190&type=chunk)

PROG Holdings, Inc. Q2 2025 Earnings Supplement July 23, 2025 PROG Internal Use of Forward-Looking Statements Statements, estimates and projections in this earnings supplement regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, ...

Exhibit 99.1 PROG Holdings Reports Second Quarter 2025 Results SALT LAKE CITY, July 23, 2025 - PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Vive Financial, Four Technologies, and Build today announced financial results for the second quarter ended June 30, 2025. "Our second quarter results once again demonstrate the resiliency of our Leasing business and our ability to manage through a period of high uncertainty and the loss of an important retail partner to liquidati ...

Q1 2025 Financial Performance - Consolidated revenues reached $684.1 million[5], a 6.6% increase year-over-year[12, 17] - Net earnings totaled $34.7 million[5], with a diluted EPS of $0.83[5] - Adjusted EBITDA amounted to $70.3 million[5], representing 10.3% of consolidated revenues[11] - Non-GAAP diluted EPS was $0.90[5], relatively flat year-over-year[12] Segment Results - Progressive Leasing's GMV was $402.0 million[5], a 4.0% decrease year-over-year[15, 20] - Progressive Leasing's revenue increased 5.0% year-over-year to $651.6 million[15, 20] - Progressive Leasing's write-offs as a percentage of revenue was 7.4%, within the targeted annual range of 6-8%[14, 15] - Four Technologies experienced GMV growth of 145.7% and achieved quarterly positive Adjusted EBITDA[5] 2025 Outlook - The company revised its full-year 2025 revenue outlook to $2.425 billion - $2.5 billion[21] - The company projects Q2 2025 revenues between $575 million and $595 million[24]

Financial Data and Key Metrics Changes - In Q1 2025, consolidated revenue reached $684.1 million, a 6.6% increase year over year, driven by a larger lease portfolio and higher ninety-day purchase activity [10][40] - Adjusted EBITDA was $70.3 million, and non-GAAP EPS was $0.90, both exceeding the high end of the company's outlook [15][40] - The lease portfolio balance increased by 6.1% year over year as of December 31, 2024, compared to a 5.2% decline at the same point in 2023 [14][40] Business Line Data and Key Metrics Changes - Progressive Leasing's GMV for Q1 was $402 million, down 4% from the previous year, primarily due to the bankruptcy of a large retail partner and tighter lease approval rates [34][10] - Revenue for the Progressive Leasing segment grew 5% from $620.6 million to $651.6 million, driven by a larger portfolio size and higher levels of ninety-day early purchase activity [35] - Four Technologies, the BNPL platform, achieved triple-digit revenue growth and its first quarter of positive adjusted EBITDA [17][39] Market Data and Key Metrics Changes - The company observed a decline in consumer confidence due to ongoing economic volatility, impacting discretionary spending, particularly in big-ticket categories [11][18] - Despite the challenges, the company reported low to mid-single-digit GMV growth when excluding the impact of the bankruptcy of a major retail partner [12][34] - The company noted that tax refunds were comparable to the previous year, but financial stress continues to affect many households [11][18] Company Strategy and Development Direction - The company is focused on executing its ecosystem strategy, which includes both leasing and BNPL products, to meet consumer needs and drive cross-sell opportunities [17][28] - Strategic investments in marketing and technology are prioritized to optimize decision-making and manage risk [19][28] - The company aims to maintain a disciplined approach to spending while investing in areas that will have the greatest impact on growth [21][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the deterioration of the macro environment since the initial guidance in February, citing inflation and tariff concerns as significant pressures [18][44] - The company remains confident in its ability to navigate through challenging environments and expects to deliver sustainable profitable growth [20][47] - Revised revenue outlook for 2025 is projected between $2.425 billion and $2.5 billion, reflecting the impact of GMV headwinds and macroeconomic uncertainties [46][45] Other Important Information - The provision for lease merchandise write-offs was 7.4%, with a gross margin of 29.3%, down about 112 basis points from the previous year [36] - The company ended Q1 with $213.3 million in cash and $600 million in gross debt, resulting in a net leverage ratio of 1.42 times trailing twelve months adjusted EBITDA [41] - The company returned capital to shareholders through dividends and share buybacks, repurchasing 936,000 shares at an average price of $27.87 per share [41] Q&A Session Summary Question: What are the observations regarding the trade-down environment? - Management noted that trade-down behavior still exists but is more muted compared to the latter half of 2024, with no significant tightening in approvals observed [55][56] Question: How has the retail softness progressed since February? - Management indicated that while the quarter started encouragingly, a downshift in sentiment was observed, with no significant rebound noted [60] Question: What is the expected impact of the $30 million GMV headwind from the lost customer? - Management confirmed that the $30 million headwind is expected to be consistent across the four quarters of the year [62] Question: How are inflation and tariffs impacting retail partners and customers? - Management explained that modest price increases could be beneficial, but significant price shocks and demand destruction are concerning [71][72] Question: What is the status of legacy Big Lots customers? - Management is actively directing former Big Lots customers to other partners and tracking the success of these efforts [76][77] Question: What changes have been observed in credit performance? - Management confirmed that while approval rates are down 300 to 400 basis points year over year, the portfolio remains healthy, and early indicators are performing as expected [100][88] Question: Can you discuss the pipeline of new retailers? - Management expressed optimism about the pipeline and noted that the current environment is conducive for discussions with potential new partners [95][96]

Financial Data and Key Metrics Changes - In Q1 2025, consolidated revenue reached $684.1 million, a 6.6% increase year-over-year from $641.9 million [26] - Adjusted EBITDA was $70.3 million, slightly down from $72.6 million in the previous year [26] - Non-GAAP EPS was $0.90, exceeding the high end of the outlook [26] Business Line Data and Key Metrics Changes - Progressive Leasing's GMV was $402 million, down 4% year-over-year, primarily due to the bankruptcy of a large retail partner [22][23] - Excluding the impact of the Big Lots bankruptcy, GMV growth was low to mid-single digits [22][23] - Ford Technologies continued to grow revenues at a triple-digit rate, achieving its first quarter of positive adjusted EBITDA [11][81] Market Data and Key Metrics Changes - The lease portfolio balance as of December 31, 2024, was up 6.1% year-over-year, compared to a 5.2% decline at the same point in 2023 [10] - Write-offs for Q1 came in at 7.4%, slightly better than expected, with a targeted annual write-off range of 6% to 8% [10][24] Company Strategy and Development Direction - The company is focused on executing its ecosystem strategy, which includes both leasing and BNPL products to meet consumer needs [11][19] - Strategic investments will continue in marketing and technology to optimize decision-making and manage risk [12][19] - The company aims to maintain a disciplined approach to spending while prioritizing areas with the greatest impact [14][19] Management's Comments on Operating Environment and Future Outlook - The macro environment has deteriorated, with inflation and tariff concerns impacting consumer confidence and spending [12][28] - Despite challenges, the company remains confident in its ability to grow share and deliver sustainable profitable growth [13][30] - The revised revenue outlook for 2025 reflects the GMV headwinds, with expectations for revenue between $2.425 billion and $2.5 billion [29] Other Important Information - The company returned capital to shareholders through dividends and share repurchases, with a quarterly cash dividend of $0.13 per share [26] - The company has $335.2 million remaining under its $500 million share repurchase program [26] Q&A Session Summary Question: What are the dynamics of the trade-down environment? - Management noted that trade-down behavior still exists but is more muted compared to the latter half of 2024, with no significant tightening observed [36] Question: How has retail softness progressed? - The quarter started encouragingly, but a downshift in consumer sentiment was noted, with no significant rebound observed [40] Question: What is the impact of the Big Lots bankruptcy on GMV? - The $30 million GMV headwind from the lost customer is expected to be consistent across the quarters, with some seasonal variations [41][42] Question: How are inflation and tariffs affecting retail partners? - Management indicated that modest price increases could be beneficial, but significant price shocks and demand destruction are concerning [46] Question: What is the outlook for GMV in Q2 and the rest of the year? - No specific GMV guidance was provided due to uncertainty, but management remains focused on maintaining a healthy portfolio and managing expenses [95][96]

Financial Performance - PROG Holdings reported revenues of $684.1 million for Q1 2025, a 6.6% increase from $641.9 million in Q1 2024, driven by a larger lease portfolio [118]. - Earnings before income taxes rose to $47.2 million in Q1 2025, a 49.6% increase from $31.6 million in Q1 2024, primarily due to lower restructuring costs and increased revenues [128]. - Operating profit for Q1 2025 was $56.3 million, a 41.4% increase from $39.8 million in Q1 2024, indicating improved operational efficiency [128]. - Lease revenues and fees for Progressive Leasing increased by 5.0% to $651.6 million in Q1 2025, attributed to a larger lease portfolio [129]. - Cash provided by operating activities increased by 54.7% to $209.9 million, primarily due to higher cash received from early lease buyouts [143]. Customer Metrics - Active customer count for Progressive Leasing increased to 828, while Vive's active customer count rose to 88, reflecting stable growth in customer engagement [121]. - Gross Merchandise Volume (GMV) for Progressive Leasing decreased by $16.6 million (4.0%) to $401.96 million, while Vive's GMV increased by $4.7 million (14.8%) to $36.27 million in Q1 2025 compared to Q1 2024 [120]. - The total GMV for the Company increased by $59.2 million (11.9%) to $558.1 million in Q1 2025 compared to Q1 2024, driven by growth in the Other segment [120]. Expenses and Costs - Operating expenses decreased by 6.3% to $119.3 million in Q1 2025 from $127.3 million in Q1 2024 [131]. - Personnel costs increased by 1.0% to $45.2 million, while stock-based compensation rose by 19.0% to $7.9 million [131]. - The provision for lease merchandise write-offs increased to 7.4% of lease revenues in Q1 2025, up from 7.0% in Q1 2024, but remained within the targeted annual range of 6% to 8% [116]. - Provision for loan losses increased by 30.0% to $14.4 million, driven by growth in the Four business and macroeconomic uncertainties [134]. Cash Flow and Financing - Cash used in financing activities increased to $88.2 million, primarily for the repayment of $50.0 million drawn on the revolving credit facility [145]. - The company repurchased 935,992 shares for $26.1 million during Q1 2025, with remaining authorization of $335.2 million [148]. - Cash and cash equivalents increased by $117.6 million to $213.3 million as of March 31, 2025 [141]. Tax and Liabilities - The effective income tax rate decreased to 26.5% in Q1 2025 from 30.4% in Q1 2024, primarily due to discrete tax expenses in the prior year [140]. - As of March 31, 2025, the Company had deferred income tax liabilities of $64.4 million, reflecting temporary differences between tax basis and book basis [156]. - The Company made net tax payments of $0.3 million during the three months ended March 31, 2025, and anticipates estimated tax payments of $80.2 million for the next nine months [155]. Debt and Commitments - The Company issued $600 million in Senior Notes with a fixed annual interest rate of 6.0%, maturing on November 15, 2029 [159]. - As of March 31, 2025, the Company had no outstanding borrowings under its Revolving Facility, which is indexed to the Secured Overnight Financing Rate (SOFR) [163]. - Future interest payments on the Company's variable-rate debt are based on a margin of 1.5% to 2.5% over SOFR for revolving loans [158]. - The Company is in compliance with various covenants related to its Senior Notes as of March 31, 2025, and expects to maintain compliance in the future [154]. - The Company had unconditionally cancellable unfunded lending commitments totaling approximately $459.8 million as of March 31, 2025, which do not generate revenues or cash flows [160]. Market Conditions - Inflationary pressures and elevated living costs negatively impacted consumer confidence and demand for lease-to-own offerings, contributing to the decline in GMV for Progressive Leasing [117]. - The Company experienced elevated customer payment delinquencies, prompting a tightening of decisioning posture to maintain a healthy lease portfolio [116]. Operational Commitments - The Company has no long-term commitments to purchase merchandise or significant purchase agreements exceeding expected requirements for three months [159]. - The Company leases management and IT space under operating leases expiring at various times through 2028, with renewal options available [157]. - The Company does not use significant market risk sensitive instruments for hedging or trading purposes [164].