PROG (US:PRG)2026-02-18 13:24Financial Performance - Consolidated revenues for Q4 2025 were $574.6 million, a decrease of 5.2% from Q4 2024[5] - Net earnings from continuing operations for Q4 2025 were $19.9 million, down from $58.3 million in the prior year[6] - Adjusted EBITDA for Q4 2025 was $61.5 million, representing 10.7% of revenues, compared to $64.1 million or 10.6% of revenues in Q4 2024[6] - Total revenues for the three months ended December 31, 2025, were $574,586, a decrease of 5.2% from $606,376 in the same period of 2024[25] - Lease revenues and fees for the year ended December 31, 2025, were $2,322,754, a slight decrease of 1.8% compared to $2,366,489 in 2024[27] - Operating profit for the three months ended December 31, 2025, was $38,529, down 24.2% from $50,874 in the prior year[25] - Net earnings for the year ended December 31, 2025, were $146,788, a decrease of 25.5% from $197,249 in 2024[23] - Basic earnings per share for continuing operations were $3.10 for the year ended December 31, 2025, compared to $4.63 in 2024, reflecting a decline of 33.5%[23] - Non-GAAP net earnings from continuing operations for the full year 2025 were $143.51 million, compared to $146.97 million for the full year 2024, reflecting a decrease of 2.5%[36] - Non-GAAP diluted earnings per share from continuing operations for the three months ended December 31, 2025, was $0.74, down from $0.78 in the same period of 2024, representing a decline of 5.1%[37] - Adjusted EBITDA for the three months ended December 31, 2025, was $61.55 million, compared to $63.93 million for the same period in 2024, indicating a decrease of 3.7%[43] - For the twelve months ended December 31, 2025, net earnings from continuing operations reached $124,352 thousand, with an adjusted EBITDA of $269,167 thousand[47] Cash and Assets - The company ended Q4 2025 with cash of $308.8 million and gross debt of $600 million[9] - Cash and cash equivalents increased to $308,774 as of December 31, 2025, from $90,920 in 2024, representing a significant increase of 239.5%[21] - Total assets grew to $1,610,408 as of December 31, 2025, up from $1,513,767 in 2024, indicating a growth of 6.4%[21] - Total liabilities remained relatively stable at $863,991 in 2025 compared to $863,486 in 2024[21] - Cash provided by operating activities for the year ended December 31, 2025, was $334,962, an increase from $138,525 in 2024[23] Growth and Projections - For full year 2026, the company projects total revenues from continuing operations between $3,020 million and $3,140 million[11] - The projected diluted EPS from continuing operations for full year 2026 is between $3.34 and $3.79[11] - The projected net earnings from continuing operations for fiscal year 2026 are estimated to be between $132,000 thousand and $155,000 thousand, with projected adjusted EBITDA ranging from $350,000 thousand to $320,000 thousand[51] - The projected diluted earnings per share from continuing operations for full year 2026 is estimated to be between $4.00 and $4.45[53] - For the three months ended March 31, 2026, the projected adjusted EBITDA from continuing operations is expected to be between $65,000 thousand and $75,000 thousand[52] Strategic Initiatives - The company plans to continue investing in growth and deleveraging following the acquisition of Purchasing Power[3] - The company plans to include estimated interest expense on Purchasing Power's asset-backed secured borrowings in its adjusted EBITDA starting in 2026, indicating a strategic shift in financial reporting[33] - The management emphasized that non-GAAP measures provide a clearer picture of operational performance, which is crucial for strategic planning and forecasting[35] Expenses and Write-offs - The company incurred restructuring expenses of $2.8 million in Q4 2025, which contributed to the decline in net earnings[37] - The total interest expense for the three months ended December 31, 2025, was $7.12 million, reflecting the costs associated with asset-backed secured borrowings[43] - Interest expense for the twelve months ended December 31, 2025, totaled $32,254 thousand, reflecting an increase from previous periods[47] - Stock-based compensation for the twelve months ended December 31, 2025, was $28,477 thousand, indicating a significant investment in employee incentives[47] - The company incurred restructuring expenses of $2,798 thousand for the twelve months ended December 31, 2025, as part of its operational adjustments[47] - The company reported a write-off of assets due to retailer bankruptcy amounting to $4.996 million in Q4 2025, impacting overall financial results[43] - The company reported costs related to a cybersecurity incident, net of insurance recoveries, amounting to $(88) thousand for the twelve months ended December 31, 2025[47] Market Performance - Progressive Leasing's GMV for Q4 2025 was $534 million, down 10.6% year-over-year[8] - PROG Marketplace GMV increased by 187% during the quarter[4] - Four Technologies achieved a GMV growth of 126% in Q4 2025[4] - Progressive Leasing reported a total GMV of $837.97 million for the three months ended December 31, 2025, an increase of 14.5% compared to $732.07 million in the same period of 2024[29]