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]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $684.1 million, a 6.6% increase year over year, driven by a larger lease portfolio and higher purchase activity [9][27] - Adjusted EBITDA was $70.3 million, slightly down from $72.6 million in the previous year [27] - Non-GAAP EPS was $0.90, exceeding the high end of the outlook [10][27] - The lease portfolio balance increased by 6.1% year over year, compared to a 5.2% decline at the same point in 2023 [10] Business Line Data and Key Metrics Changes - Progressive Leasing's GMV for Q1 was $402 million, down 4% from the previous year, primarily due to the bankruptcy of a large retail partner [22][24] - Excluding the impact of the Big Lots bankruptcy, GMV growth was low to mid-single digits [8][24] - Ford Technologies, the BNPL platform, achieved triple-digit revenue growth and positive adjusted EBITDA for the first time [11][80] Market Data and Key Metrics Changes - The macroeconomic environment has deteriorated, with inflation and tariff concerns impacting consumer confidence and spending [12][29] - Consumer behavior has shifted, with many delaying discretionary spending, particularly in big-ticket categories [8][12] Company Strategy and Development Direction - The company is focused on executing its ecosystem strategy, which includes enhancing both leasing and BNPL products to meet consumer needs [11][19] - Strategic investments in marketing and technology are prioritized to drive growth and optimize risk management [12][19] - The company aims to maintain a disciplined approach to spending while making selective capital investments [14][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in the company's ability to navigate through it [12][29] - The revised 2025 outlook reflects increased macro uncertainty and a decline in consumer confidence, particularly in key categories [29][30] - Management expects lease portfolio performance to remain within the targeted 6% to 8% annual write-off range [30] Other Important Information - The company returned capital to shareholders through dividends and share repurchases, with a quarterly cash dividend of $0.13 per share [27] - The company has $335.2 million remaining under its $500 million share repurchase program [27] 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? - Management indicated that while the quarter started encouragingly, there was a noticeable downshift in consumer sentiment, with no significant rebound observed [40] Question: What is the impact of the Big Lots bankruptcy on GMV? - Management confirmed that the $30 million GMV headwind from the lost customer is expected to be consistent across the quarters [41][42] Question: How are inflation and tariffs impacting retail partners? - Management highlighted that modest price increases could be beneficial, but significant price shocks and demand destruction are concerning [46] Question: What is the status of the American Signature partnership? - Management reported positive progress with American Signature, indicating strong connectivity and training efforts [64] Question: What is the reduction in lease approval rates? - Management stated that lease approval rates are approximately 300 to 400 basis points lower year over year, influenced by tightening actions and a shift in application quality [70]