Revenue Contribution - Progressive Leasing accounted for approximately 97% of PROG Holdings' consolidated revenues for the year ended December 31, 2022[19]. - Vive contributed about 3% to the consolidated revenues for the same period[24]. - The percentage of Progressive Leasing's revenues from furniture, appliances, and electronics was 57% for 2022[37]. - Vive's revenues from furniture and mattresses increased to 55% in 2022, up from 41% in 2020[38]. - Progressive Leasing derived 49.3% of its consolidated revenues from its top three POS partners and 77.3% from its top ten POS partners in 2022[79]. Customer Metrics - The first quarter typically sees higher revenues due to increased lease originations during the holiday season and tax refunds, a trend expected to continue[53]. - The company experienced a significant increase in customer payment delinquencies and uncollectible renewal payments during 2022, which exceeded pre-pandemic levels, prompting tighter lease decisioning[199]. - Active customer count decreased to 1,074,000 in 2022, down from 1,150,000 in 2021, primarily due to reduced demand and tighter lease decisioning[207]. Financial Performance - Revenues for 2022 were reported at $2,597,826,000, a decrease of 3.0% from $2,677,920,000 in 2021[215]. - Earnings before income tax expense fell to $148,244,000 in 2022, down 54.8% from $328,204,000 in 2021[215]. - Lease revenues and fees for Progressive Leasing were $2,523,785,000 in 2022, a decline of 3.6% from $2,619,005,000 in 2021[216]. - Operating expenses rose to $450,374,000 in 2022, an increase of 13.3% compared to $397,399,000 in 2021[217]. - The provision for uncollectible renewal payments increased to $376,300,000 in 2022 from $224,700,000 in 2021[216]. - The provision for loan losses surged by 133.4% to $41,232,000 in 2022 from $17,668,000 in 2021[217]. Macroeconomic Environment - The company operates in a challenging macroeconomic environment, with inflation and rising interest rates negatively impacting consumer confidence and demand for merchandise[200]. - The expiration of government stimulus payments and enhanced unemployment benefits contributed to unfavorable results in 2022 compared to 2021[203]. - Inflation has risen at the fastest pace in over 40 years, adversely affecting consumer confidence and potentially leading to increased payment delinquencies[76]. Compliance and Regulatory Risks - Federal regulatory authorities are increasingly scrutinizing alternative consumer financial services, which may lead to higher compliance costs and potential penalties for the company[65]. - The company anticipates significant compliance costs due to increased regulatory scrutiny, which may lead to fines, penalties, and remediation expenses[70]. - The company is subject to various federal and state laws, including the California Consumer Privacy Act and the California Privacy Rights Act, which require complex compliance measures[69]. - Compliance with the FTC settlement requires cooperation from POS partners, and any violations could lead to significant penalties and operational changes[101]. Strategic Initiatives - The company plans to grow gross merchandise volume (GMV) through existing and new POS partners, as well as direct-to-consumer initiatives[25]. - The company plans to launch a career development framework tool in 2023 to support employee development through online learning curricula[48]. - The company is implementing mentorship programs targeted at female, minority, and LGBTQ+ employees, expected to be operational in 2023[50]. Shareholder Returns and Capital Management - The company repurchased approximately 13% of its outstanding shares at $49.00 per share, totaling around $425 million, as part of its capital allocation strategy[94]. - For the fiscal year ended December 31, 2022, the company purchased an additional $223.6 million of its common stock, representing 15.5% of its outstanding shares[95]. - The company has increased its share repurchase program from $300 million to $1.0 billion, indicating a commitment to return excess capital to shareholders[94]. Operational Challenges - Supply chain issues, particularly those related to COVID-19, have adversely affected inventory levels and sales for POS partners, impacting Progressive Leasing's performance[89]. - The company relies on key executives and skilled personnel in information technology, and the loss of such talent could materially affect operations[98]. - The company faces significant competition from various operators, including lease-to-own stores and buy now, pay later companies, which may impact market share and profitability[100]. Technology and Cybersecurity - The reliance on third-party vendors for technology and data poses risks; service disruptions could prevent transaction processing and harm relationships with POS partners[107]. - Cybersecurity threats could compromise sensitive customer information, leading to potential liability and damage to customer relationships[115]. - Software errors or outages may result in degraded service quality, negatively impacting customer retention and brand reputation[113]. Employee and Diversity Metrics - As of December 31, 2022, the employee count was 1,491 for Progressive Leasing, 184 for Vive, and 17 for Four, with the majority being full-time employees[48]. - The gender diversity metrics as of December 31, 2022, show that 76.3% of Vice Presidents and above are male, while 53.0% of all other employees are female[48]. - The company offers competitive wages and benefits, including health benefits, paid parental leave, and a company-matched 401(k)[51].

Financial Data and Key Metrics Changes - Q3 revenue for PROG Holdings was $625.8 million, a decrease of 3.8% compared to $650.4 million in the year-ago period [24] - Adjusted EBITDA for Q3 was $65 million, or 10.4% of revenues, down from $93.6 million, or 14.4% of revenues in the same period last year [24] - GAAP diluted EPS was $0.32, while non-GAAP EPS came in at $0.68 [25] - The accounts receivable provision increased to $104.3 million for Q3 2022 from $61.5 million for Q3 2021, reflecting higher delinquencies year-over-year [21] Business Line Data and Key Metrics Changes - Q3 GMV for the Progressive Leasing segment was down 11.3% year-over-year, primarily due to macroeconomic factors and tighter decisioning [20] - Progressive Leasing revenue was $606.6 million in Q3, a 4.5% decrease from $635 million in the year-ago period [21] - Progressive Leasing write-offs were $43.5 million, or 7.2% of revenues, compared to $34.2 million, or 5.4% of revenues in the year-ago period [22] Market Data and Key Metrics Changes - E-commerce accounted for 16.5% of total Q3 GMV, up from 14.5% for the same period last year [10] - Retail traffic remains down, with several large partners posting double-digit negative comps [12] - The company experienced weak consumer demand across most retail verticals, contributing to the negative GMV comp [11][13] Company Strategy and Development Direction - The company is focused on increasing its balance of share with key retailers and expanding its e-commerce partnerships [10][11] - Management emphasized the importance of technological innovations and pipeline conversions to mitigate macroeconomic headwinds [15][17] - The company has lowered its full-year 2022 financial outlook due to ongoing challenges in the macro environment [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging, with expectations for Q4 GMV to be similar to Q3's year-over-year percentage decline [16] - The company is optimistic about converting more retail partners from its pipeline over the next several years [11] - Management highlighted the strength of the business model, demonstrating effective portfolio management and cash flow generation even in a difficult environment [18] Other Important Information - The company ended September with a cash position of $222 million and has reduced its outstanding share count by 27% since the beginning of 2021 [16][25] - During Q3, the company repurchased 588,000 shares, with $373.5 million remaining under its $1 billion share repurchase program [25] Q&A Session Summary Question: Impact of GMV Deceleration - Management indicated that GMV pressures were primarily due to macroeconomic weakness and decisioning changes made throughout Q2, with more than 50% of Q3's decline attributed to decisioning [29][30] Question: Prospects for GMV Recovery - Management expressed that recovery in consumer demand is difficult to predict, but they remain encouraged by their ability to execute growth initiatives despite the challenging retail environment [31][34] Question: Competitive Environment - Management noted that the challenging environment provides opportunities to demonstrate the strength of their business model and to capture market share from smaller competitors facing funding issues [35][36] Question: Accounts Receivable Provision Dynamics - Management explained that the accounts receivable provision is still heavily weighted towards the old portfolio, but they expect relief as newer decisioning practices take effect [41][42] Question: Write-off Rates and Future Expectations - Management stated that they expect write-offs in Q4 to be similar to Q3 levels, aiming for the high end of their annual target range of 6% to 8% [76][77] Question: Retail Partner Pipeline - Management confirmed that the current retail environment is conducive for their flexible payment solutions, and they are optimistic about converting their pipeline into partnerships [51][52] Question: Operating Expenses and Flexibility - Management indicated that while SG&A expenses may tick up in Q4 due to seasonal factors, they maintain a highly variable cost structure that allows for flexibility [66][68]

PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents PROG Holdings, Inc.'s unaudited condensed consolidated financial statements, detailing balance sheets, earnings, and cash flows, highlighting a notable decline in net earnings and a goodwill impairment [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's condensed consolidated balance sheets, detailing assets, liabilities, and equity as of September 30, 2022, and December 31, 2021 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | $221,886 | $170,159 | | Lease Merchandise, Net | $566,148 | $714,055 | | Goodwill | $296,061 | $306,212 | | Total Assets | $1,491,491 | $1,621,761 | | **Liabilities & Equity** | | | | Debt | $590,642 | $589,654 | | Total Liabilities | $925,027 | $942,353 | | Total Shareholders' Equity | $566,464 | $679,408 | | Total Liabilities & Shareholders' Equity | $1,491,491 | $1,621,761 | [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) This section presents the company's condensed consolidated statements of earnings, comparing financial performance for the three and nine months ended September 30, 2022 and 2021 Condensed Consolidated Statements of Earnings Highlights (in thousands, except per share data) | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $625,821 | $650,405 | $1,985,729 | $2,031,377 | | Operating Profit | $36,811 | $78,321 | $123,213 | $276,739 | | Net Earnings | $16,005 | $57,413 | $62,624 | $205,738 | | Diluted EPS | $0.32 | $0.86 | $1.18 | $3.06 | - The company recorded a **goodwill impairment charge of $10,151 thousand** in the third quarter and nine months ended September 30, 2022, with no similar charge in the prior year periods[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's condensed consolidated statements of cash flows, detailing cash movements from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $283,150 | $294,890 | | Cash Used in Investing Activities | ($39,949) | ($72,524) | | Cash Used in Financing Activities | ($191,474) | ($130,223) | | **Increase in Cash and Cash Equivalents** | **$51,727** | **$92,143** | - The company spent **$187.4 million** on treasury stock acquisitions in the first nine months of 2022, a significant increase from **$128.2 million** in the same period of 2021[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, explaining significant accounting policies, segment information, and material events - The company operates through two reportable segments: Progressive Leasing (**lease-to-own solutions**) and Vive Financial (**second-look revolving credit products**). It also owns Four Technologies, a **Buy Now, Pay Later company**, which is not a reportable segment[17](index=17&type=chunk)[20](index=20&type=chunk) - A **goodwill impairment test was triggered** for the Four reporting unit as of September 30, 2022, due to **declining valuations in the Buy Now, Pay Later industry**, **increased forecasted losses**, and **projected negative cash flows**. This resulted in a **$10.2 million impairment charge**[59](index=59&type=chunk)[60](index=60&type=chunk) - In Q2 and Q3 2022, the company initiated **restructuring activities to reduce expenses**, resulting in **charges of $4.7 million for Q3 and $9.0 million for the nine months ended September 30, 2022**. These costs were primarily for **employee severance and impairment of right-of-use assets**[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of high inflation on customer performance and GMV, leading to tightened lease decisioning, revenue decline, and reduced earnings, despite a solid liquidity position - The company is operating in a **challenging macro environment** where **high inflation** is pressuring customers, leading to **higher payment delinquencies and write-offs**. In response, the company has **tightened its lease decisioning criteria**, which has **adversely impacted Gross Merchandise Volume (GMV) production**[111](index=111&type=chunk) Gross Merchandise Volume (GMV) (in thousands) | Segment | Q3 2022 | Q3 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Progressive Leasing | $437,417 | $493,277 | ($55,860) | (11.3)% | | Vive | $47,967 | $49,085 | ($1,118) | (2.3)% | | Other | $15,786 | $2,655 | $13,131 | nmf | | **Total GMV** | **$501,170** | **$545,017** | **($43,847)** | **(8.0)%** | Active Customer Count (as of September 30) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | Progressive Leasing | 915,000 | 936,000 | | Vive | 92,000 | 87,000 | | Other | 27,000 | 8,000 | | **Total Active Customer Count** | **1,034,000** | **1,031,000** | [Results of Operations – Three months ended September 30, 2022 and 2021](index=27&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20months%20ended%20September%2030%2C%202022%20and%202021) This section analyzes the company's financial performance for the third quarter, highlighting revenue, expense, and earnings trends compared to the prior year - **Total revenues for Q3 2022 decreased by 3.8% to $625.8 million**. The decline was driven by a **4.5% drop in Lease Revenues and Fees**, primarily due to a **higher provision for uncollectible renewal payments ($104.3 million in Q3 22 vs. $61.5 million in Q3 21)**. This was partially offset by a **25.1% increase in Interest and Fees on Loans Receivable**[126](index=126&type=chunk)[127](index=127&type=chunk) - **Operating expenses increased by 10.5% to $112.7 million** in Q3 2022. This was mainly due to a **211% increase in the provision for loan losses to $12.0 million**, a **new $4.7 million restructuring expense**, and a **$10.2 million goodwill impairment charge**[126](index=126&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - The **provision for lease merchandise write-offs increased by 27.4% to $43.5 million** in Q3 2022, reflecting **higher customer payment delinquencies** compared to the stronger payment activity in Q3 2021[126](index=126&type=chunk)[132](index=132&type=chunk) - **Earnings before income tax expense fell 64.9% to $27.3 million**. The decline was most pronounced in the Progressive Leasing segment, which saw its **pre-tax earnings fall by 43.1%**. The 'Other' category reported a **loss of $17.5 million**, which includes the **$10.2 million goodwill impairment for Four**[135](index=135&type=chunk) [Results of Operations – Nine Months Ended September 30, 2022 and 2021](index=30&type=section&id=Results%20of%20Operations%20%E2%80%93%20Nine%20Months%20Ended%20September%2030%2C%202022%20and%202021) This section analyzes the company's financial performance for the nine-month period, detailing revenue, expense, and earnings trends compared to the prior year - For the nine months ended Sep 30, 2022, **total revenues decreased 2.2% to $1.99 billion**. The **provision for uncollectible renewal payments**, which reduces revenue, **more than doubled to $289.8 million from $137.8 million** in the prior year period[138](index=138&type=chunk)[139](index=139&type=chunk) - **Operating expenses for the nine-month period rose 16.6% to $338.0 million**, driven by **higher personnel costs**, a **93.5% increase in the provision for loan losses**, a **new $9.0 million restructuring expense**, and the **$10.2 million goodwill impairment**[138](index=138&type=chunk)[141](index=141&type=chunk) - The **provision for lease merchandise write-offs increased by 85.1% to $155.7 million** for the nine-month period, reflecting **higher customer delinquencies and write-offs** compared to the prior year[138](index=138&type=chunk)[148](index=148&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, debt, and available credit facilities, along with cash flow activities and share repurchase programs - As of September 30, 2022, the company had **$221.9 million in cash**, **$350.0 million available under its Revolving Facility**, and **$600.0 million of indebtedness from its Senior Notes**[156](index=156&type=chunk) - **Cash from operating activities decreased slightly to $283.2 million** for the nine months ended Sep 30, 2022, from **$294.9 million** in the prior year period. The decrease was driven by **reduced customer payment activity** and **higher interest payments on Senior Notes**, partially offset by **lower purchases of lease merchandise**[157](index=157&type=chunk) - The company **repurchased 6,687,618 shares for $187.4 million** during the first nine months of 2022. As of September 30, 2022, **$373.5 million remained authorized for future share repurchases**[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its variable-rate Revolving Facility, though no outstanding borrowings mitigate immediate impact - The company is exposed to **interest rate risk** through its **variable-rate Revolving Facility**, which is indexed to LIBOR or the prime rate. As of September 30, 2022, there were **no outstanding borrowings under this facility**[174](index=174&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[178](index=178&type=chunk) - **No changes occurred in the company's internal control over financial reporting** during the quarter that have **materially affected**, or are **reasonably likely to materially affect**, these controls[179](index=179&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, and exhibits, providing additional context beyond financial statements [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, but does not anticipate a material adverse impact on its financial position - The company is involved in various **legal proceedings**, but does not currently believe any will have a **material adverse impact on its business or financial position**. For further details, the report refers to Note 4 of the financial statements[180](index=180&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) There are no updates to the company's risk factors from those previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - The company reported **no updates to its risk factors** from the 2021 Annual Report[181](index=181&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity for the third quarter of 2022 under its existing authorization Share Repurchase Activity for Q3 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2022 | 97,203 | $16.51 | | August 2022 | 290,549 | $18.97 | | September 2022 | 200,000 | $18.85 | | **Total** | **587,752** | | [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - Lists the **exhibits filed with the report**, including **CEO/CFO certifications** (31.1, 31.2, 32.1, 32.2) and **XBRL data files**[187](index=187&type=chunk)

PROG Holdings Inc. (NYSE:PRG) Q2 2022 Results Conference Call July 27, 2022 8:30 AM ET Company Participants Brian Garner - CFO John Baugh - VP, IR Steve Michaels - President, CEO Conference Call Participants Alessandra Jimenez - Raymond James Anthony Chukumba - Loop Capital Brad Thomas - KeyBanc Capital Markets Hal Goetsch - Loop Capital Jason Haas - Bank of America Kyle Joseph - Jefferies Vincent Caintic - Stephens Operator Good morning and welcome to the PROG Holdings, Inc., Second Quarter 2022 Earnings ...

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2022 OR WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION FOR THE TRANSITION PERIOD FROM TO Securities registered pursuant to Section 12(b) of the Act: Common Stock, $0.50 Par Value PRG New York St ...

Financial Data and Key Metrics Changes - Q1 consolidated revenues decreased by 1.5% year-over-year, amounting to $710.5 million compared to $721 million in the previous year [27] - Adjusted EBITDA for Q1 was $64.6 million, representing a margin of 9.1%, down from $118.1 million or 16.4% in the same period last year [27] - GAAP diluted EPS was $0.49, while non-GAAP EPS was $0.57 [28] Business Line Data and Key Metrics Changes - Progressive Leasing's revenue was $692.9 million, a 2.1% decrease from $708 million in the prior year [21] - The gross leased asset balance increased by 17.6%, which is expected to drive stronger revenue in the latter half of the year [13][22] - Write-offs for Progressive Leasing were $50.3 million, or 7.3% of revenue, compared to $18.6 million and 2.6% in the previous year [25] Market Data and Key Metrics Changes - Progressive Leasing's GMV declined by 1.1% year-over-year, with e-commerce GMV growing by 10% year-over-year, representing 15.9% of total GMV in Q1 [12] - The company anticipates that the macroeconomic environment will remain challenging but believes it can capture a larger share of the underserved market [18] Company Strategy and Development Direction - The company is focusing on several initiatives to increase GMV, including co-branded marketing campaigns and enhanced customer experience [11] - The management believes that the current economic environment presents an opportunity to capture a larger share of the market as consumers seek flexible payment solutions [18] - The company is committed to investing in technology and product development to enhance its offerings and maintain competitive advantage [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that Q1 results represent the low point for EBITDA margins and GMV growth for the year [11] - The company expects write-offs to remain within the targeted annual range of 6% to 8% for 2022 [15] - Management noted that the business has shown resilience in various economic cycles and anticipates growth opportunities in the current environment [18] Other Important Information - The company repurchased approximately $78.1 million of its common stock during Q1, with $482.8 million remaining under its $1 billion share repurchase program [29] - The company ended the quarter with $600 million in gross debt and $184 million in cash, resulting in a net leverage of approximately 1.2 times trailing 12-month adjusted EBITDA [28] Q&A Session Summary Question: Can you provide more details on the new e-commerce retail partner? - Management indicated that the new partner is Wayfair, which presents a significant opportunity for growth [59] Question: How do you expect the year to shape up, particularly for Q2? - Management expects Q2 to show improvement but noted that the most significant acceleration will occur in the back half of the year [49][53] Question: What are the implications of the tax refund season on results? - Management described the tax season as muted this year, with typical behaviors observed but difficult to separate from the impact of prior stimulus [85] Question: What percentage of customers are repeat customers? - Approximately 50% of leases originated in any given period are from repeat customers, an increase from the mid-30s percentage a few years ago [94]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-39628 ________________________________ PROG HOLDINGS, INC. (Exact name of regis ...

Financial Data and Key Metrics Changes - PROG Holdings reported a consolidated revenue growth of 6.8% year-over-year for Q4, reaching $646.5 million, and a 7.8% increase for the full year 2021 [13][32] - Adjusted EBITDA for Q4 was $72.1 million, representing an adjusted EBITDA margin of 11.2%, down from 15.6% in the previous year [13][32] - The company ended 2021 with adjusted EBITDA of $388.7 million, a 13.9% increase over 2020, and an adjusted EBITDA margin of 14.5% [13][32] Business Line Data and Key Metrics Changes - The Progressive Leasing segment achieved GMV growth of 18.3% in Q4 and 15.8% for the year, with e-commerce GMV growing 45% in Q4 and 151% for the year [11][29] - Progressive Leasing's revenue grew 6% to $630 million in Q4, driven by portfolio growth, while the provision for write-offs was 6.8%, aligning with pre-pandemic norms [30][32] - Vive Financial segment reported record GMV revenue and adjusted EBITDA in 2021, with expected revenue growth driven by a higher loans receivable balance [21][22] Market Data and Key Metrics Changes - The company noted that GMV growth was primarily driven by large national POS partners, and they expect this trend to continue despite macroeconomic challenges [12][18] - The first quarter of 2022 has started slightly negative year-to-date compared to the same period last year, influenced by supply chain disruptions and inflation [17][18] Company Strategy and Development Direction - PROG Holdings aims to broaden its fintech ecosystem by developing innovative products and technologies, including the integration of Four Technologies for Buy Now, Pay Later solutions [10][23] - The company has authorized a $1 billion share repurchase program and returned significant capital to shareholders by repurchasing approximately 17% of its outstanding common stock [10][14] - The management team has been strengthened with seasoned executives and independent directors to enhance operational capabilities [16] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the macroeconomic environment, including supply chain disruptions, labor shortages, and inflation, which may create headwinds in the near term [17][24] - For 2022, the company forecasts revenue growth in the mid-to-high single digits for Progressive Leasing, with adjusted EBITDA margins expected to return to pre-pandemic levels [18][35] - Management remains optimistic about long-term growth opportunities, particularly in e-commerce and partnerships with retail partners [25][24] Other Important Information - The company reported a net cash position and plans to utilize its strong cash generation capabilities for capital allocation priorities, including share repurchases and potential M&A [14][28] - The company expects SG&A expenses to return to slightly higher than pre-pandemic levels due to investments in technology and increased compensation costs [20][60] Q&A Session Summary Question: Is the current shift in consumer behavior due to inflation or a result of previous stimulus spending? - Management indicated that the current environment is influenced by multiple factors, including inflation and the impact of COVID, but they expect improvement as the situation normalizes [39][40] Question: What is the outlook for the credit environment and its impact on customer behavior? - Management anticipates a normalization in credit performance, with higher write-offs expected, but they believe there will be a demand for point-of-sale payment options as the macro environment evolves [48][50] Question: How does the company view its cash flow generation and share repurchase strategy? - Management confirmed strong cash flow generation capabilities and indicated that they will continue to return cash to shareholders while maintaining a conservative leverage ratio [56][58] Question: What is the competitive landscape following recent industry consolidations? - Management noted that while competition remains strong, the consolidation may level the playing field and provide opportunities for PROG Holdings to capture market share [65][66] Question: How should investors connect GMV growth with reported revenue growth? - Management clarified that while there is a correlation, the growth in leased asset portfolios will have a more direct impact on revenue, and normalization of 90-day buyouts will also affect revenue trends [68][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file Number. 1-39628 PROG HOLDINGS, INC. (Exact name of registrant as specified in its charter) Georgia 85-2484385 (State or other jurisdiction of in ...

PROG Holdings, Inc. (NYSE:PRG) Q3 2021 Earnings Conference Call November 3, 2021 8:30 AM ET Company Participants John Baugh - Vice President of Investor Relations Steve Michaels - Chief Executive Officer Brian Garner - Chief Financial Officer Conference Call Participants Anthony Chukumba - Loop Capital Kyle Joseph - Jefferies Jason Haas - Bank of America Bobby Griffin - Raymond James Brad Thomas - KeyBanc Capital Markets Vincent Caintic - Stephens Inc. Hal Goetsch - Loop Capital Markets Operator Good day an ...