Financial Data and Key Metrics Changes - The company reported a 123% year-over-year increase in revenue, reaching $104.9 million [18] - Adjusted net income grew 286% year-over-year to $36.1 million, with a net income margin of 34.5% [18][23] - Gross margin for the quarter was 70.4%, reflecting strong unit economics [8][22] Business Line Data and Key Metrics Changes - Gross Merchandise Volume (GMV) rose 64% year-over-year, significantly outpacing the overall BNPL industry [8] - Monthly on-demand users and subscribers (referred to as mods) increased by 77% year-over-year to 658,000 [8][14] - The average quarterly purchase frequency increased from 4.5 to 6.1 times per quarter [15] Market Data and Key Metrics Changes - The company continues to represent less than 10% of the overall payments market, indicating significant growth potential [4] - The take rate increased to 13% at GMV, benefiting from strong subscriber engagement and the partnership with WebBank [19] Company Strategy and Development Direction - The company is focusing on expanding its product offerings, including new features like Pay in Five and auto couponing to enhance consumer experience [11][60] - There is a strategic push towards enterprise-level merchants and new categories such as grocery and bills, which have been slower to adopt BNPL [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength amid market volatility, highlighting improved margins and rapid portfolio turnover [21] - The company raised its 2025 guidance, projecting revenue growth of 60% to 65% and earnings per share of $3.25, reflecting strong demand and credit performance [24][26] Other Important Information - A $50 million share repurchase program was announced, along with a six-for-one stock split to enhance liquidity [12] - The company has seen a significant increase in cash from operations, growing nearly $20 million year-over-year to $58.8 million [24] Q&A Session Summary Question: Can you tell us about your funnel of new merchants? - The company is focusing on enterprise-level merchants while also engaging with mid-sized merchants, expanding into new categories like grocery and bills [29][30] Question: What is the frequency or optimism you're seeing from on-demand products? - Monthly sequential growth indicates strong performance, with a lower barrier to entry for consumers [33] Question: Can you quantify the financial benefit from the WebBank partnership? - The partnership has improved revenue yield as a percentage of GMV, allowing for optimized product offerings [42] Question: What contributes to the stickiness of monthly subscribers? - The ease of use and seamless integration of the product into consumer shopping habits contribute to high retention rates [44][46] Question: How is the company managing credit quality? - The company maintains a focus on ROI and gross margins while being open to adjusting credit quality to support growth [50][52] Question: Can you describe the new features Pay in Five and auto couponing? - Pay in Five allows for an additional payment option, while auto couponing aims to enhance customer value and retention by providing unexpected savings [56][60]

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