Core Insights - PROG Holdings, Inc. has announced an agreement to acquire Purchasing Power, a prominent provider of voluntary employee benefit programs [1] - The acquisition aims to enhance PROG Holdings' offerings by allowing employees to purchase brand-name products and services through payroll deductions or allotments [1] - Purchasing Power collaborates with major employers across more than 25 industries in the United States [1]

Core Insights - Seeking Alpha welcomes a new contributing analyst, Tyler Franklin, who encourages others to share investment ideas [1] Group 1 - The analyst graduated from the University of Alabama in 2017 with a degree in Management Information Systems [2] - Currently employed at Southwest Research Institute in San Antonio, TX, as an application developer [2] - The analyst has been investing since 2017 and emphasizes the importance of thorough research before initiating positions in quality or undervalued businesses [2] Group 2 - The analyst holds a beneficial long position in the shares of PRG, owning 107 shares [3][4] - The article expresses the analyst's personal opinions and is not influenced by any business relationships with companies mentioned [3]

Core Points - PROG Holdings, Inc. declared a quarterly cash dividend of $0.13 per share, payable on December 2, 2025, to shareholders of record as of November 18, 2025 [1] - The company is a fintech holding firm that provides various consumer financial products and payment options, including lease-to-own solutions and Buy Now, Pay Later services [2] Company Overview - PROG Holdings, Inc. is headquartered in Salt Lake City, Utah, and operates through its subsidiaries: Progressive Leasing, Four Technologies, and Build [2][3] - The company employs approximately 2,000 people and focuses on providing transparent and competitive payment options [2][3] Recent Financial Performance - The company reported strong earnings and expanded margins in its third quarter results for the period ending September 30, 2025, despite ongoing economic pressures faced by consumers [5] - PROG Holdings is scheduled to release its third quarter 2025 financial results on October 22, 2025, with a live webcast planned for the same day [7] Strategic Transactions - PROG Holdings announced the sale of its Vive Financial credit card receivables portfolio to Atlanticus Holdings Corporation, which is expected to enhance the company's capital efficiency and profitability while maintaining access to credit solutions for near and below-prime consumers [6]

Group 1 - The article does not provide any specific content related to a company or industry, as it appears to be a technical issue regarding browser settings and ad-blockers [1]

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]

Financial Data and Key Metrics Changes - Non-GAAP diluted EPS for Q3 was $0.90, exceeding the outlook range of $0.70-$0.75, marking a 17% increase year-over-year [6][28] - Consolidated revenue for Q3 was $595.1 million, reflecting a slight decline from $606.1 million in the same period last year [10][26] - 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] 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 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] - Write-offs for Progressive Leasing were 7.4%, showing improvement both sequentially and year-over-year, reflecting effective risk management [9][25] 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 to Atlanticus Holdings Corporation [11][12] - Strategic pillars include growing direct-to-consumer performance, enhancing technology for customer experience, and expanding the multi-product ecosystem [12][16][18] - The company aims to deepen partner engagement and drive sustainable, profitable revenue through its multi-product ecosystem [21] 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 [8] - The company anticipates continued softness in demand for durable goods in Q4 but remains focused on portfolio health and disciplined spending [20][21] - The revised outlook for 2025 reflects consolidated revenues in the range of $2.41 billion to $2.435 billion, adjusted EBITDA of $258 million to $265 million, and non-GAAP EPS of $3.35 to $3.45 [30][31] 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 1.1x [29] - The company did not repurchase shares during the quarter due to ongoing discussions regarding the Vive portfolio [22][28] Q&A Session Summary Question: Update on consumer pulse amid current challenges - Management acknowledged elevated delinquencies but noted improvements in write-offs due to prior tightening actions, indicating a cautious but stable portfolio [35][36] Question: GMV outlook for the rest of the year - Management indicated that Q3 was a tough comp and that pressures would continue into Q4, with expectations for improvement in Q1 2026 [37][38] Question: Discussion on trade down effects - Management noted no significant trade down observed in the credit stacks, but acknowledged the potential for tightening in the future [48][49] Question: Insights on Four Technologies and customer acquisition - Management highlighted that Four's growth has been driven by organic referrals and word-of-mouth, with plans to enhance cross-selling opportunities [78][79]

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]

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 [6][24] - Consolidated revenue for Q3 was $595.1 million, reflecting a slight decline compared to $606.1 million in the same period last year, primarily due to the impact of the Big Lots GMV loss [10][29] - Consolidated adjusted EBITDA was $67 million, representing an increase from $63.5 million year over year, with an adjusted EBITDA margin of 11.3% [29] Business Line Data and Key Metrics Changes - Progressive Leasing GMV for Q3 was $410.9 million, 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 [25][26] - Revenue for Progressive Leasing was approximately $556.6 million, down about 4.5% from $582.6 million in the prior year, impacted by GMV headwinds [26] - Write-offs for Progressive Leasing were 7.4%, showing improvement both sequentially and year over year, reflecting effective risk management [9][27] Market Data and Key Metrics Changes - E-commerce GMV represented 23% of total Progressive Leasing GMV in Q3, up from 20.9% in Q2 and 16.6% in Q3 2024, indicating strong growth in online channels [13] - Ford Technologies continued to show strong performance with triple-digit GMV and revenue growth for the eighth consecutive quarter, contributing significantly to overall company performance [19][20] Company Strategy and Development Direction - The company announced the sale of its VYVE Financial credit card receivables portfolio to Atlantica Holdings Corporation, aimed at improving capital efficiency and profitability [11][30] - Strategic priorities include investing in growth, exploring M&A opportunities, and returning excess cash to shareholders through share repurchases and dividends [22][31] - The company is focused on enhancing its omni-channel ecosystem and strengthening relationships with retail partners, with nearly 70% of Progressive Leasing GMV renewed to exclusive contracts [14][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing consumer challenges due to inflation and financial stress among lower-income households, impacting discretionary spending [6][21] - The company expects continued headwinds in Q4 due to the macroeconomic environment but remains committed to driving sustainable, profitable revenue [21][22] - The revised outlook for 2025 anticipates consolidated revenues between $2.41 billion and $2.43 billion, with adjusted EBITDA in the range of $258 million to $265 million [33] Other Important Information - The company ended Q3 with a strong cash position of $292.6 million and a net leverage ratio of 1.1 times, indicating financial stability [32] - The VYVE divestiture is expected to provide approximately $150 million in liquidity, enhancing the company's balance sheet [30][32] Q&A Session Summary Question: Update on consumer pulse and write-offs - Management noted improvements in write-offs due to earlier tightening actions, but acknowledged elevated delinquencies and ongoing consumer stress [35][37] Question: GMV outlook for the rest of the year - Management indicated that Q3 was a tough comp and expected similar headwinds in Q4, with a clearer outlook anticipated in Q1 2026 [40][41] Question: Capital allocation strategy post-Vibe sale - Management emphasized a disciplined approach to capital allocation, prioritizing growth investments and strategic M&A before considering share repurchases [67][70] Question: Current environment and trade down effects - Management observed no significant trade down effects from higher-tier providers but noted the need for ongoing monitoring of the consumer landscape [50][52] Question: Insights on FORWARD customer acquisition - Management highlighted strong organic growth driven by referrals and word-of-mouth, with plans to enhance cross-selling opportunities between products [94][95]

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]