Core Insights - The company navigated a challenging retail environment in 2025, marked by a significant partner bankruptcy and intentional credit tightening, resulting in an 8.6% decline in leasing GMV [1] - A strategic shift was made towards a 'consolidated GMV' framework to better reflect the contributions from the BNPL platform and the newly acquired Purchasing Power business [1] - The For segment achieved triple-digit GMV and revenue growth for nine consecutive quarters, driven by high consumer engagement and a successful subscription model [1] Financial Performance - The company generated $45 million in incremental leasing GMV through cross-selling to existing Money App and For customers, leveraging a multi-product ecosystem [1] - The Vibe portfolio was divested to enhance capital efficiency and redirect resources towards higher-return strategic initiatives [1] - Progressive Leasing maintained disciplined portfolio management, keeping write-offs within the target range of 6% to 8% despite macroeconomic volatility [1] Technological Integration - AI capabilities were integrated, including the Piper Plus assistant and a flexible lease engine, improving operational efficiency and decision speed by approximately 75% [1]

Financial Data and Key Metrics Changes - For the full year of 2025, consolidated GMV grew 12.1%, supported by Four's triple-digit growth at approximately 144% [9] - Adjusted EBITDA from continuing operations for 2025 was $269 million, which was essentially flat compared to the previous year and exceeded the high end of the outlook provided in October [10][33] - Non-GAAP diluted EPS from continuing operations was $3.51, beating both the October outlook and the original guidance provided in February [10][33] Business Line Data and Key Metrics Changes - Leasing GMV was down 8.6% year-over-year, primarily due to the bankruptcy of a large retail partner and intentional tightening actions [5][6] - Excluding the impact of Big Lots bankruptcy and decisioning tightening, underlying GMV grew in the mid-single digits [6] - Four Technologies delivered triple-digit GMV and revenue growth throughout the year, contributing approximately $736 million of GMV, representing 144% growth year-over-year [31] Market Data and Key Metrics Changes - Progressive Leasing's Q4 GMV declined 10.6% year-over-year, driven by the impact of the Big Lots bankruptcy and intentional tightening actions [28] - Digital channels, particularly PROG Marketplace, saw GMV increase by 187% year-over-year, highlighting the effectiveness of direct-to-consumer investments [29] - E-commerce GMV reached an all-time high of approximately 30% of total Progressive Leasing GMV in Q4 2025, compared to 17% in 2024 [14] Company Strategy and Development Direction - The company is focusing on a three-pillar strategy: grow, enhance, and expand, with an emphasis on a multiproduct platform [11][24] - The acquisition of Purchasing Power is expected to expand offerings into a differentiated channel and enhance customer lifetime value across the platform [21][24] - The company aims to balance near-term pressures with long-term value creation, emphasizing disciplined execution and strategic investments [11][24] Management's Comments on Operating Environment and Future Outlook - The management anticipates a challenging operating environment in 2026, particularly for consumer segments, but expects higher tax refunds to provide incremental liquidity [22][23] - The company plans to reinvest in the business while focusing on debt reduction and maintaining a leaner cost structure [24][35] - Management expressed confidence in navigating the challenging environment while building long-term shareholder value [39] Other Important Information - The company sold its Vive portfolio to realign capital towards opportunities with stronger strategic alignment [7] - The integration of Purchasing Power is expected to drive cross-product engagement and leverage shared data capabilities [21][24] - The company ended 2025 with $308.8 million in cash and total available liquidity of approximately $659 million [33] Q&A Session Summary Question: Performance expectations for Purchasing Power - Management expects low double-digit revenue growth for Purchasing Power in 2026, with potential for synergies and improved EBITDA margins over time [43][46] Question: Credit outlook by product - Management is encouraged by the outcomes of tightening efforts and expects to maintain a disciplined decisioning posture across products, including Progressive Leasing and Four [48][52] Question: Trends in GMV and retail partnerships - Management noted a slight rebound in GMV towards the end of 2025 and expects to lap headwinds from bankrupt partners in early 2026, leading to improved trends [75]