Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $684.1 million, a 6.6% increase year over year, driven by a larger lease portfolio and higher purchase activity [9][27] - Adjusted EBITDA was $70.3 million, slightly down from $72.6 million in the previous year [27] - Non-GAAP EPS was $0.90, exceeding the high end of the outlook [10][27] - The lease portfolio balance increased by 6.1% year over year, compared to a 5.2% decline at the same point in 2023 [10] 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 [22][24] - Excluding the impact of the Big Lots bankruptcy, GMV growth was low to mid-single digits [8][24] - Ford Technologies, the BNPL platform, achieved triple-digit revenue growth and positive adjusted EBITDA for the first time [11][80] Market Data and Key Metrics Changes - The macroeconomic environment has deteriorated, with inflation and tariff concerns impacting consumer confidence and spending [12][29] - Consumer behavior has shifted, with many delaying discretionary spending, particularly in big-ticket categories [8][12] Company Strategy and Development Direction - The company is focused on executing its ecosystem strategy, which includes enhancing both leasing and BNPL products to meet consumer needs [11][19] - Strategic investments in marketing and technology are prioritized to drive growth and optimize risk management [12][19] - The company aims to maintain a disciplined approach to spending while making selective capital investments [14][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in the company's ability to navigate through it [12][29] - The revised 2025 outlook reflects increased macro uncertainty and a decline in consumer confidence, particularly in key categories [29][30] - Management expects lease portfolio performance to remain within the targeted 6% to 8% annual write-off range [30] Other Important Information - The company returned capital to shareholders through dividends and share repurchases, with a quarterly cash dividend of $0.13 per share [27] - The company has $335.2 million remaining under its $500 million share repurchase program [27] 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? - Management indicated that while the quarter started encouragingly, there was a noticeable downshift in consumer sentiment, with no significant rebound observed [40] Question: What is the impact of the Big Lots bankruptcy on GMV? - Management confirmed that the $30 million GMV headwind from the lost customer is expected to be consistent across the quarters [41][42] Question: How are inflation and tariffs impacting retail partners? - Management highlighted that modest price increases could be beneficial, but significant price shocks and demand destruction are concerning [46] Question: What is the status of the American Signature partnership? - Management reported positive progress with American Signature, indicating strong connectivity and training efforts [64] Question: What is the reduction in lease approval rates? - Management stated that lease approval rates are approximately 300 to 400 basis points lower year over year, influenced by tightening actions and a shift in application quality [70]

Financial Performance - Consolidated revenues for Q1 2025 were $684.1 million, a 6.6% increase from Q1 2024[4] - Net earnings for the quarter were $34.7 million, up from $22.0 million in the prior year[4] - Adjusted EBITDA for Q1 2025 was $70.3 million, representing 10.3% of revenues[4] - Net earnings for the three months ended March 31, 2025, increased to $34,718 thousand, up 58% from $21,966 thousand in the same period of 2024[20] - Total revenues for the three months ended March 31, 2025, reached $684,088 thousand, representing a 6.5% increase from $641,870 thousand in the prior year[22] - Cash provided by operating activities rose to $209,929 thousand for the three months ended March 31, 2025, compared to $135,733 thousand in the same period of 2024, an increase of 54.5%[20] - Non-GAAP net earnings for Q1 2025 were $37,665 thousand, compared to $40,641 thousand in Q1 2024, reflecting a decrease of 4.9%[31] - Non-GAAP diluted earnings per share for Q1 2025 were $0.90, slightly down from $0.91 in Q1 2024[31] - For the three months ended March 31, 2025, consolidated total net earnings were $34,718,000, compared to $21,966,000 for the same period in 2024, representing a year-over-year increase of 58%[34]. Market and Operational Metrics - Progressive Leasing's GMV was $402.0 million, down 4.0% compared to Q1 2024[6] - Four Technologies achieved GMV growth of 145.7% and recorded its first quarter of positive adjusted EBITDA[3] - Gross Merchandise Volume (GMV) for Progressive Leasing decreased to $401,962 thousand in Q1 2025 from $418,512 thousand in Q1 2024, a decline of 3.9%[24] Cash and Debt Management - The company ended Q1 2025 with cash of $213.3 million and gross debt of $600.0 million[7] - Cash and cash equivalents increased to $213,301 thousand at the end of Q1 2025, up from $95,655 thousand at the beginning of the period[20] - The company repurchased $26.1 million of its stock during the quarter, leaving $335.2 million of repurchase capacity[7] Outlook and Projections - The updated 2025 revenue outlook is between $2.425 billion and $2.5 billion, reflecting a downward revision due to macroeconomic challenges[9] - The projected diluted EPS for 2025 is revised to a range of $2.62 to $3.01[9] - The projected full year 2025 adjusted EBITDA range is estimated to be between $245,000,000 and $261,000,000, reflecting a strategic focus on growth despite challenges in certain segments[36]. - The projected diluted earnings per share for full year 2025 is estimated to be between $2.90 and $3.30, which includes adjustments for intangible amortization expenses[39]. - The company anticipates a projected net earnings range of $109,000,000 to $125,000,000 for the full year 2025, indicating a positive outlook for profitability[36]. Expenses and Liabilities - The provision for lease merchandise write-offs was 7.4%, within the targeted annual range of 6-8%[6] - Total liabilities decreased from $863,486 thousand as of December 31, 2024, to $815,465 thousand as of March 31, 2025, a reduction of approximately 5.6%[18] - Interest expense, net for the three months ended March 31, 2025, was $9,090,000, compared to $8,250,000 in the prior year, reflecting an increase of 10.2%[34][35]. - The company reported a restructuring expense of $6,000 for the three months ended March 31, 2025, compared to $18,014,000 in the same period of the previous year, showing a significant reduction in restructuring costs[34][35]. - The estimated income tax expense for the full year 2025 is projected to be between $45,000,000 and $49,000,000, which is a critical factor in the overall earnings forecast[36]. Risk Management - The company has reported costs related to a cybersecurity incident, net of insurance recoveries, amounting to $(24,000) for the three months ended March 31, 2025, highlighting ongoing challenges in risk management[34].

Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenues rose 8% to $623.3 million, primarily driven by growth in the Progressive Leasing segment [49] - Adjusted EBITDA increased 7.7% to $65.7 million, reflecting improved profitability from Forre and PRG Ventures [49] - Non-GAAP diluted EPS grew 11.1% to $0.80 per share, at the high end of the outlook provided [15][49] Business Line Data and Key Metrics Changes - Progressive Leasing's GMV grew 9.1% year-over-year in Q4 2024, contributing to a 6.3% revenue increase driven by a larger lease portfolio [12][44] - Gross margin for Progressive Leasing was 31.9%, down 100 basis points from the previous year due to higher delinquencies and increased 90-day purchase options [45] - Write-offs for Q4 2024 were 7.9%, slightly above expectations, attributed to higher delinquencies from new customer acquisitions [13][46] Market Data and Key Metrics Changes - The bankruptcy of Big Lots is expected to impact GMV projections, with Q1 2025 anticipated to be flat year-over-year [17][54] - Excluding Big Lots, GMV growth for the rest of the Progressive Leasing business is expected to be in the high single digits [21][54] Company Strategy and Development Direction - The company aims to expand retail partnerships and enhance direct-to-consumer efforts, with a focus on multichannel growth strategies [21][24] - Investments in marketing and technology are planned to drive customer acquisition and improve operational efficiencies [22][25] - The three-pillar strategy focuses on growing, enhancing, and expanding the business to ensure sustainable long-term growth [16][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing financial pressures on consumers and anticipates challenges in the retail environment, particularly in the furniture and electronics sectors [35][37] - Despite these challenges, the company remains optimistic about achieving GMV growth in 2025 through effective execution and strategic initiatives [16][20] - The capital allocation strategy includes reinvesting in the business, pursuing M&A opportunities, and returning excess capital to shareholders [38][39] Other Important Information - The PROG Marketplace platform nearly tripled in GMV, exceeding the 2024 goal of doubling year-over-year [23] - The company generated $138.5 million in cash from operations in 2024 and actively repurchased shares, with $361.4 million remaining under the share repurchase program [52] Q&A Session Summary Question: Industry evolution and implications for VLTO sector - Management expects demand to be spread across remaining players, with a continued multichannel journey for customers [62][64] Question: Guidance factors and signs of life in verticals - Management noted some optimism among retailers but does not expect significant growth in the near term [67][68] Question: Early buyouts and credit performance during tax refund season - Management anticipates a normal tax season but lacks visibility on its impact for several weeks [72] Question: 2025 revenue guidance and Big Lots impact - Management indicated that Big Lots' bankruptcy will have a significant impact on GMV, but they remain optimistic about overall growth [80][81] Question: Current customer behavior trends - Management observed stress among lower-tier customers, leading to higher delinquencies, while new customer growth is being monitored [86][88] Question: Big Lots assumptions and store performance - Management does not expect significant volume from Big Lots post-bankruptcy and is focusing on retaining repeat customers [95][97] Question: Margin outlook for 2025 - Management expects a decline in margins due to the impact of Big Lots but remains committed to long-term growth initiatives [100][101] Question: GMV contribution from American Signature - Management expects to replace previous GMV levels from American Signature in 2025 [107] Question: Lease approval rates and customer quality - Management reported a decrease in approval rates for new customers, attributed to lower application quality and tightening decisioning [110][113]

Core Insights - PROG Holdings (PRG) reported quarterly earnings of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, and showing an increase from $0.72 per share a year ago, resulting in an earnings surprise of 6.67% [1] - The company achieved revenues of $623.32 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.62% and up from $577.4 million year-over-year [2] - PROG Holdings has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $671.76 million, while for the current fiscal year, the estimate is $3.84 on revenues of $2.62 billion [7] - The estimate revisions trend for PROG Holdings is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Financial - Consumer Loans industry, to which PROG Holdings belongs, is currently ranked in the top 8% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of PROG Holdings may be influenced by the overall industry outlook, as empirical research indicates a strong correlation between stock movements and earnings estimate revisions [5][8] Competitor Insights - Encore Capital Group (ECPG), a competitor in the same industry, is expected to report quarterly earnings of $1.55 per share, reflecting a year-over-year increase of 24%, with revenues anticipated to be $373.71 million, up 34.7% from the previous year [9][10]

Revenue Composition - Progressive Leasing accounted for approximately 96% of PROG Holdings' consolidated revenues for the year ended December 31, 2024[21]. - Vive contributed approximately 3% to the consolidated revenues for the same period[22]. - The majority of Progressive Leasing's revenues (58%) came from furniture, appliances, and electronics in 2024[34]. - Vive's revenue from furniture and mattresses represented 50% of its total revenue in 2024[34]. - In 2024, 52.6% of consolidated revenues were derived from the top three POS partners, and 78.2% from the top ten POS partners, indicating high revenue concentration risk[71]. Financial Performance - Revenues for the company reached $2.5 billion in 2024, marking a 2.3% increase from $2.4 billion in 2023[200]. - Net earnings for the company increased by 42.1% to $197.2 million in 2024, compared to $138.8 million in 2023[207]. - Earnings before income tax decreased to $163.6 million in 2024, down 16.6% from $196.2 million in 2023[207]. - Operating expenses increased by 4.0% to $469.2 million in 2024, compared to $451.1 million in 2023[207]. - The provision for lease merchandise write-offs increased to 7.5% of lease revenues in 2024, up from 6.7% in 2023, but remained within the targeted range of 6% to 8%[192]. Customer Engagement and Technology - PROG Holdings plans to grow gross merchandise volume (GMV) through existing and new POS partners, aiming to enhance customer engagement and simplify the leasing process[23]. - The company is investing in technology platforms to improve customer experience and expand e-commerce capabilities[23]. - The lease application volume increased in 2024 due to strategic growth initiatives and e-commerce integrations, positively impacting Gross Merchandise Volume (GMV)[189]. - In Q3 2024, Progressive Leasing's GMV generated from e-commerce platforms represented 17.0% of its total GMV[112]. Compliance and Regulatory Environment - The company expects continued focus from federal and state regulatory authorities on alternative consumer financial services, potentially increasing compliance costs and operational changes[60][61]. - The California Consumer Privacy Act and its amendments require the company to maintain complex compliance controls across multiple states, increasing operational costs[62]. - The company incurred substantial costs for compliance with federal, state, and local laws, which may continue to impact financial performance[63]. - Regulatory scrutiny on alternative financial services, including BNPL offerings, is increasing, which may impose additional compliance costs[81]. Market Risks and Economic Conditions - Adverse macroeconomic conditions, such as persistent inflation and elevated interest rates, could reduce demand for products and services, negatively impacting revenue[68]. - Inflationary pressures have significantly increased the cost of living, negatively affecting customer demand and financial performance in 2024[189]. - Big Lots, one of the top ten POS partners, filed for Chapter 11 bankruptcy in September 2024, which is expected to negatively impact Progressive Leasing's GMV in 2025[190]. Cybersecurity and Operational Risks - A cybersecurity incident in September 2023 affected Progressive Leasing's systems, but there was no major operational impact[85]. - The company has a cybersecurity program based on the NIST Cybersecurity Framework to mitigate data security threats[164]. - The company maintains cyber liability insurance and conducts regular audits and penetration tests to enhance its cybersecurity maturity[168]. - The company faces heightened cybersecurity risks during the modernization of its information management systems[82]. Employee and Organizational Structure - As of December 31, 2024, employee count was 1,261 for Progressive Leasing, 124 for Vive, and 18 for Four and Other, with the majority being full-time employees[42]. - Personnel costs for the years ended December 31, 2024, 2023, and 2022 were $172.5 million, $187.2 million, and $194.2 million, respectively[48]. - The company supports employee resource groups (ERGs) to promote inclusiveness and diversity, receiving executive and monetary support[41]. Shareholder Value and Capital Allocation - Progressive Leasing repurchased approximately 29.9% of its outstanding shares since Q4 2021, totaling $501.8 million, including $138.7 million in the 2024 fiscal year[90]. - The company initiated a quarterly cash dividend in February 2024, paying dividends for each fiscal quarter since Q1 2024[90]. - The capital allocation strategy aims to enhance shareholder value, but there is no assurance it will be effective[89]. Strategic Initiatives and Future Outlook - The company plans to implement a new enterprise resource planning system in fiscal 2025 to optimize financial processes and enhance scalability[82]. - The company is exploring expansion into complementary businesses and new technologies, including machine learning and AI[65]. - The company may pursue acquisitions or divestitures, which could have a material adverse impact on performance if not executed successfully[118].

Financial Performance - Consolidated revenues for Q4 2024 were $623.3 million, an increase of 8.0% from Q4 2023[4] - Consolidated net earnings for the quarter were $57.5 million, compared to $18.6 million in the prior year period[5] - Adjusted EBITDA for Q4 2024 was $65.7 million, representing 10.5% of revenues, slightly down from 10.6% in Q4 2023[5] - Total revenues for the year ended December 31, 2024, increased to $2,463,496 thousand, up from $2,408,264 thousand in 2023, representing a growth of approximately 2.3%[26] - Net earnings for the year ended December 31, 2024, were $197,249 thousand, compared to $138,838 thousand in 2023, reflecting a significant increase of 42%[22] - Non-GAAP net earnings for the twelve months ended December 31, 2024, were $148,411,000, while for the twelve months ended December 31, 2023, they were $170,643,000, indicating a decrease of 13%[37] - Earnings per share assuming dilution for the twelve months ended December 31, 2024, was $4.53, compared to $2.98 for the twelve months ended December 31, 2023, reflecting a 52% increase[37] Cash and Debt Management - PROG Holdings ended Q4 2024 with cash of $95.7 million and gross debt of $650.0 million[9] - The company’s cash and cash equivalents at the end of the period were $95,655 thousand, down from $155,416 thousand at the end of 2023, a decrease of about 38.5%[22] - Total liabilities decreased to $863,486 thousand as of December 31, 2024, from $899,924 thousand in 2023, a reduction of approximately 4%[20] Growth and Projections - Progressive Leasing's GMV for Q4 2024 was $597.5 million, reflecting a year-over-year growth of 9.1%[6] - For full year 2025, PROG Holdings projects total revenues between $2,515,000 and $2,590,000[11] - The projected diluted EPS for full year 2025 is between $2.82 and $3.22[11] - Projected consolidated total adjusted EBITDA for fiscal year 2025 is estimated to be between $260,000,000 and $280,000,000[46] - Projected Earnings Per Share (EPS) for the full year 2025 is expected to range from $3.10 to $3.50, assuming dilution[48] Operational Efficiency - Cash provided by operating activities decreased to $138,525 thousand in 2024 from $204,236 thousand in 2023, a decline of approximately 32.2%[22] - The company reported lease revenues and fees of $2,366,489 thousand for the year ended December 31, 2024, compared to $2,333,588 thousand in 2023, marking a growth of about 1.4%[26] - The company reported a restructuring expense of $22,691,000 for the twelve months ended December 31, 2024, compared to $12,533,000 for the twelve months ended December 31, 2023, showing an increase of 81%[43] Future Strategies - The company plans to continue its three-pillared strategy focusing on growth, enhancement, and expansion in 2025[3] - The company plans to continue focusing on market expansion and new product development to drive future growth[29] Miscellaneous - The provision for lease merchandise write-offs for Q4 2024 was 7.9%, with a full year provision of 7.5% within the targeted range of 6-8%[8] - The company incurred costs related to a cybersecurity incident totaling $285,000 for the twelve months ended December 31, 2024[43] - The weighted average shares outstanding assuming dilution decreased from 46,550,000 for the twelve months ended December 31, 2023, to 43,549,000 for the twelve months ended December 31, 2024[37] - Projected Adjusted EBITDA for Q1 2025 is estimated to be between $63,000 and $68,000[47] - Estimated Net Earnings for Q1 2025 are projected to be between $28,000 and $32,000[47]

Financial Data and Key Metrics Changes - Q3 2024 consolidated revenue reached $606.1 million, a 4% increase compared to Q3 2023 [6][22] - Adjusted EBITDA for Q3 was $63.5 million, representing a 10.5% margin, down from 12.3% in the previous year [6][22] - The gross leased asset (GLA) balance increased by 3.8% year-over-year, marking a positive trend after a decline earlier in the year [7][18] Business Line Data and Key Metrics Changes - The Progressive Leasing segment's GMV grew by 11.6% year-over-year, exceeding expectations [5][17] - Revenue for the Progressive Leasing segment increased by 3.3% from $564.2 million in Q3 2023 to $582.6 million in Q3 2024 [18] - The number of customers with active leases increased by 3.4% year-over-year [12] Market Data and Key Metrics Changes - E-commerce GMV accounted for 16.6% of total Progressive Leasing GMV in Q3 2024, up from 14.4% in Q2 2024 [12] - The company reported that over 75% of Progressive Leasing GMV is under multi-year exclusive contracts [10] Company Strategy and Development Direction - The company focuses on a three-pillar strategy: grow, enhance, and expand, which has driven improvements across key performance metrics [6][8] - A long-term exclusive partnership was signed with American Signature, Inc., enhancing regional market positioning [8] - The PROG Marketplace platform has seen over 300% growth year-to-date, indicating strong direct-to-consumer engagement [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining write-offs within the targeted annual range of 6% to 8% for 2024 [19][24] - The company anticipates Q4 GMV growth to be in the range of high single to low double digits, driven by positive momentum [15][23] - Management acknowledged potential headwinds from store closures and bankruptcies in the retail sector but remains optimistic about partnerships and market dynamics [28] Other Important Information - The company ended Q3 2024 with $221.7 million in cash and a net leverage ratio of 1.4 times trailing 12 months adjusted EBITDA [22] - A quarterly cash dividend of $0.12 per share was paid in September, and 810,000 shares were repurchased during the quarter [22] Q&A Session Summary Question: Can you discuss the GMV dynamics considering the bankruptcy situation? - Management noted that while GMV performance was strong, the bankruptcy of certain retailers could pose a 100 to 150 basis point headwind for Q4 [28] Question: What are the expectations for write-offs in Q4? - Management expects Q4 write-offs to step down from Q3 levels, aligning with typical seasonal trends [30] Question: How does the trade-down population affect early buyouts and write-offs? - The trade-down population tends to have a higher propensity for early buyouts, which may help mitigate write-offs despite some overall delinquency increases [38] Question: What is the outlook for the Progressive Marketplace? - The Progressive Marketplace is performing well, with significant growth driven by improved marketing and customer experience [35] Question: What is the long-term GMV growth potential? - Management indicated that while the market is under-penetrated, growth will depend on adding new retailers and optimizing customer experience [58][59]

Company Performance - PROG Holdings reported quarterly earnings of $0.77 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, but down from $0.90 per share a year ago, representing an earnings surprise of 1.32% [1] - The company posted revenues of $606.15 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.09% and up from $582.88 million year-over-year [1] - Over the last four quarters, PROG Holdings has consistently surpassed consensus EPS and revenue estimates [1] Stock Performance - PROG Holdings shares have increased approximately 52% since the beginning of the year, significantly outperforming the S&P 500's gain of 22.7% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $601.84 million, and for the current fiscal year, it is $3.34 on revenues of $2.44 billion [4] - The trend of estimate revisions for PROG Holdings is mixed, which may change following the recent earnings report [4] Industry Context - The Financial - Consumer Loans industry, to which PROG Holdings belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, which may impact stock performance [5] - Another company in the same industry, Capital One, is expected to report quarterly earnings of $3.70 per share, reflecting a year-over-year decline of 16.9% [5]

Revenue and Earnings - The company reported revenues of $606.1 million for Q3 2024, a 4.0% increase from $582.9 million in Q3 2023[86]. - Lease revenues and fees increased by 3.3% to $582,551,000 compared to $564,183,000 in the same period last year[92]. - Net earnings surged to $83,962,000, a significant increase from $35,012,000 in the same quarter of 2023[92]. - Total revenues for the nine months ended September 30, 2024, were $1,840,176, a 0.5% increase from $1,830,863 in the same period of 2023[100]. - Net earnings increased by 16.2% to $139,702, up from $120,263 in the prior year[100]. Gross Merchandise Volume (GMV) - Gross Merchandise Volume (GMV) for Progressive Leasing increased by $47.5 million (11.6%) to $456.7 million, while Vive's GMV rose by $3.5 million (10.0%) to $38.8 million compared to Q3 2023[87]. - Total GMV for the company reached $557.5 million, reflecting a 20.1% increase from $464.0 million in the same quarter last year[87]. - The increase in Progressive Leasing revenues was primarily due to an 11.6% increase in gross merchandise volume compared to the same quarter in 2023[93]. Customer Metrics - Active customer count for Progressive Leasing grew to 848,000, up from 820,000 in the prior year, driven by strategic initiatives and tightening credit supply[89]. - E-commerce channels contributed 16.6% of Progressive Leasing's GMV in Q3 2024, up from 14.8% in Q3 2023[87]. Operating Performance - Earnings before income taxes decreased to $41.8 million in Q3 2024, down from $48.1 million in Q3 2023, primarily due to higher provisions for lease merchandise write-offs and loan losses[86]. - Operating profit decreased by 10.3% to $49,231,000, down from $54,884,000 in the prior year[92]. - Operating profit decreased by 23.9% to $144,726 from $190,259 in the same period last year[100]. Costs and Expenses - The company incurred $0.1 million and $0.3 million in costs related to a cybersecurity incident for Q3 2024 and year-to-date, respectively, totaling $3.2 million since the incident occurred[84]. - Total operating expenses rose by 1.8% to $111,108,000 from $109,183,000 year-over-year[95]. - Personnel costs decreased by 9.6% to $42,260,000, down from $46,729,000 in the same quarter last year[95]. - Provision for lease merchandise write-offs increased by $7,770,000, representing a 21.0% rise compared to the previous year[92]. - Restructuring expenses rose significantly by $18.9 million due to additional restructuring activities during the nine months ended September 30, 2024[104]. Tax and Income - The effective income tax rate was (100.6)% for the three months ended September 30, 2024, compared to 27.2% for the same period in 2023[99]. - Income tax benefit for the nine months ended September 30, 2024 was $17.9 million, compared to an expense of $47.4 million in the prior year, resulting in an effective tax rate of (14.7)% versus 28.3% in 2023[109]. Cash Flow and Investments - Cash and cash equivalents increased by $66.3 million to $221.7 million as of September 30, 2024[111]. - Cash provided by operating activities was $223.0 million for the nine months ended September 30, 2024, down from $292.5 million in the same period in 2023, a decrease of $69.5 million[114]. - Cash used in investing activities increased to $35.6 million from $18.8 million year-over-year, driven by a $143.1 million increase in cash investments in loans receivable[115]. - Cash used in financing activities was $121.1 million, including $98.2 million for stock repurchases and $15.4 million in dividends[116]. Shareholder Returns - The company repurchased 2,620,562 shares for $98.2 million during the nine months ended September 30, 2024, with remaining authorization for an additional $401.8 million[118]. - Aggregate dividend payments during the nine months ended September 30, 2024 totaled $15.4 million, with a quarterly cash dividend of $0.12 per share declared on August 8, 2024[119]. Debt and Commitments - As of September 30, 2024, the company had $600.0 million in indebtedness and $350.0 million available under the Revolving Facility, with no outstanding balance[120]. - Unfunded lending commitments through the Vive business totaled approximately $498.7 million as of September 30, 2024, down from $523.9 million at the end of 2023[124].

Financial Performance - Consolidated revenues for Q3 2024 were $606.1 million, a 4.0% increase from Q3 2023[3]. - Net earnings for the quarter were $84.0 million, significantly up from $35.0 million in the prior year, primarily due to a $53.6 million non-cash tax benefit[4]. - Adjusted EBITDA for Q3 2024 was $63.5 million, representing 10.5% of revenues, down from 12.3% in the same period last year[4]. - Diluted EPS for Q3 2024 was $1.94, compared to $0.76 in the same period last year; non-GAAP diluted EPS was $0.77, down from $0.90[5]. - Net earnings for the nine months ended September 30, 2024, were $139,702, up 16.2% from $120,263 in the same period of 2023[15]. - Basic earnings per share for Q3 2024 were $1.99, significantly higher than $0.77 in Q3 2023[13]. - Consolidated total net earnings for the nine months ended September 30, 2024, were $139,702,000, compared to $120,263,000 for the same period in 2023, representing a year-over-year increase of approximately 16.2%[31][32]. Revenue and Growth Metrics - Progressive Leasing's GMV reached $456.7 million, reflecting an 11.6% year-over-year growth[6]. - Total revenues for the three months ended September 30, 2024, reached $606,145 thousand, an increase from $582,877 thousand in the same period of 2023, representing a growth of approximately 4.3%[16][17]. - Lease revenues and fees for Q3 2024 reached $582,551, an increase of 3.3% from $564,183 in Q3 2023[13]. - Interest and fees on loans receivable totaled $23,594 for Q3 2024, compared to $18,694 in Q3 2023, reflecting a growth of 26.5%[13]. - The company experienced a gross merchandise volume of $557,464 thousand for the three months ended September 30, 2024, compared to $464,044 thousand in the same period of 2023, indicating a growth of approximately 20.1%[21]. Cash and Debt Management - The company ended Q3 2024 with cash of $221.7 million and gross debt of $600 million[7]. - Cash and cash equivalents increased to $221,726 as of September 30, 2024, compared to $155,416 at the end of 2023, marking a growth of 42.5%[14]. - Total liabilities decreased to $815,533 as of September 30, 2024, compared to $899,924 at the end of 2023, a reduction of 9.4%[14]. - The company repurchased $37.0 million of its stock at an average price of $45.69 per share, with $401.8 million remaining under its repurchase program[7]. Future Outlook and Projections - The full year 2024 revenue outlook was revised to a range of $2,440,000 to $2,460,000, with net earnings expected between $165,500 and $170,500[8]. - The company anticipates continued focus on market expansion and new product development in the upcoming quarters, aiming to enhance revenue streams and customer engagement[22]. - The projected adjusted EBITDA for the full year 2024 is estimated to be between $270,000,000 and $275,000,000, reflecting a potential decline from previous estimates[33][35]. - The company expects net earnings for the full year 2024 to range from $165,500,000 to $170,500,000, with projected earnings before income tax expenses of $162,500,000 to $165,500,000[33]. - The projected non-GAAP earnings per share for the full year 2024 is expected to be between $3.30 and $3.40, reflecting adjustments for intangible amortization and restructuring expenses[38][39]. Operational Metrics and Expenses - The provision for lease merchandise write-offs was 7.7%, within the targeted annual range of 6%-8%[6]. - The company reported a provision for lease merchandise write-offs of $44,736 in Q3 2024, compared to $36,966 in Q3 2023, indicating an increase of 21.0%[13]. - Stock-based compensation for the nine months ended September 30, 2024, was $21,588,000, compared to $19,081,000 for the same period in 2023, showing an increase of approximately 13.2%[31][32]. - Restructuring expenses for the nine months ended September 30, 2024, totaled $20,906,000, compared to $1,958,000 for the same period in 2023, indicating a significant increase[31][32]. - Interest expense for the full year 2024 is projected to be between $31,000,000 and $32,000,000, with depreciation and amortization expected to total $9,500,000 and $18,000,000, respectively[33][35]. Non-GAAP Financial Measures - Non-GAAP net earnings for the three months ended September 30, 2024, were $33,412 thousand, compared to $41,676 thousand in the same period of 2023, reflecting a decrease of approximately 19.8%[28]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $208,346,000, compared to $236,455,000 for the same period in 2023, indicating a decrease of about 11.9%[31][32]. - Management emphasizes the importance of non-GAAP financial measures in assessing the company's performance and making strategic decisions, highlighting their relevance in the industry[24][25].