Core Insights - PROG Holdings, Inc. hosted its Investor Day on March 10, 2026, outlining its strategic vision to transition from a leasing-centric business to a multi-product consumer access platform [1] - The company aims for profitable growth across a diversified product portfolio, leveraging a scalable operating model and a shared digital and data foundation [1] Strategic Framework - The company emphasized a deep competitive moat through a broad distribution network, including exclusive retail relationships that account for approximately 70% of Progressive Leasing GMV [1] - PROG is utilizing proprietary data to enhance marketing effectiveness and personalization, with a shared data approach already in deployment [1] - Technology modernization and AI are being implemented to achieve structural cost savings, improve customer experiences, and accelerate service delivery [1] - The expansion into a multi-product platform includes growth in Four Technologies, MoneyApp, and Purchasing Power, enhancing customer acquisition and retention [1] Financial Targets - PROG set consolidated three-year compound annual growth rate (CAGR) targets: - Adjusted non-GAAP EPS growth of 17-20% - AEBITDA growth of 13-16% - Revenue growth of 5-8% - GMV growth of 20-25% [1] Capital Allocation - The company reiterated its disciplined capital allocation strategy, focusing on returning excess capital to shareholders through dividends and share repurchases while maintaining a focus on deleveraging [1] - Investments will be prioritized in high-ROI growth initiatives, including modernization, data, marketing, and product expansion [1]

Summary of PROG Holdings 2026 Investor Day Company Overview - **Company**: PROG Holdings (NYSE:PRG) - **Event**: 2026 Investor Day - **Date**: March 10, 2026 - **Key Speaker**: Steve Michaels, President and CEO Core Industry and Business Model - **Industry**: Financial services focusing on alternative payment solutions for near and below-prime consumers - **Business Model**: PROG operates an integrated ecosystem that includes Progressive Leasing, Four Technologies, Money App, and Purchasing Power, aimed at providing flexible financial solutions to underserved consumers [10][13][19] Key Themes and Strategic Focus 1. **Integrated Ecosystem**: Building a comprehensive platform to serve credit-challenged individuals, offering clarity and trust in financial solutions [11][12] 2. **Expansion of Access**: Utilizing direct consumer channels, retail partnerships, and employer-sponsored options to drive growth and lower customer acquisition costs [12][19] 3. **Technology and Data Utilization**: Investing in AI and technology to enhance decision-making, personalization, and operational efficiency [12][32] 4. **Three-Pillared Strategy**: Focus on growth, enhancement of customer experience, and expansion into new products and markets [17][18] Financial Performance and Growth Potential - **Current GMV**: Over $2.5 billion on a trailing twelve-month basis [13] - **Customer Base**: Targeting approximately 40% of the U.S. population that lacks access to traditional credit [18] - **Growth Strategy**: Emphasis on scaling existing products, enhancing customer experiences, and expanding into new verticals [17][18] Recent Developments - **Acquisition of Purchasing Power**: Closed in January 2026, providing access to over 7 million eligible employees and enhancing the company's product offerings [27][28] - **Cross-Selling Opportunities**: Significant potential for cross-selling between existing products and the newly acquired Purchasing Power, with a focus on leveraging payroll relationships for lower loss rates [28][29] Customer Insights and Market Trends - **Consumer Demographics**: Majority of customers earn under $100,000 annually, often facing credit constraints but are digitally confident and value transparency [20][19] - **Market Trends**: Rising demand for inclusive alternative payment options, with BNPL becoming a mainstream budgeting tool [30][31] Retail Partnerships and Impact - **Retailer Relationships**: Strong partnerships with national retailers, with 70% of GMV contracted into the 2030s, indicating stability and trust [52] - **Customer Conversion**: Retailers report higher average order values and increased traffic due to the presence of Progressive Leasing [67][68] Conclusion - **Future Outlook**: PROG Holdings is positioned for sustainable growth through its integrated ecosystem, strategic partnerships, and focus on technology and customer experience. The company aims to create long-term value for shareholders while addressing the financial needs of underserved consumers [35][36]

2026 Investor Day Empowering Consumers with a Scalable Ecosystem March 10 | New York City 2026 INVESTOR DAY 1 Welcome and Opening Remarks John A. Baugh, CFA VP, Investor Relations 2026 INVESTOR DAY 2 Forward Looking Statements Statements in this presentation regarding PROG Holdings, Inc.'s (the "Company") businesses, operations and performance that are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those c ...

Core Viewpoint - PROG Holdings, Inc. is updating its full year 2026 outlook for its Purchasing Power business ahead of its Investor Day scheduled for March 10, 2026 [1] Financial Outlook - The application of revenue recognition standard ASC 606 will lead to a reduction in total Purchasing Power revenue by approximately $70 million, affecting the Travel and Service product categories [2] - The revised total revenue guidance for PROG Holdings from continuing operations is projected to be between $2,950 million and $3,070 million, while Purchasing Power's total revenues are expected to range from $610 million to $660 million [4] - The company anticipates Purchasing Power's revenue to grow at a low double-digit rate, with no material impact on gross margin, earnings before taxes, or adjusted EBITDA due to the changes [2][3] Assumptions and Market Conditions - The company's assumptions for the 2026 outlook remain unchanged, including expectations of a challenging operating environment with soft demand for consumer durable goods [3] - The company does not anticipate a material economic slowdown despite ongoing geopolitical tensions, such as hostilities related to Iran [3] Company Overview - PROG Holdings, Inc. is a fintech holding company that provides various consumer financial products, including lease-to-own solutions and employee purchase programs [5]

Core Insights - The company reported a consolidated GMV growth of 12.1% in 2025, driven by a significant increase in the Four Technologies platform, which grew approximately 144% [2][6] - Despite a decline in leasing GMV of 8.6% for the full year due to external pressures, underlying leasing GMV showed mid-single-digit growth when adjusted for specific factors [3][4] - The company successfully navigated a challenging retail environment and met or exceeded its 2025 guidance, with a focus on portfolio performance and strategic acquisitions [4][5] Financial Performance - The company ended 2025 with approximately $659 million in available liquidity and provided guidance for 2026, projecting revenues between $3.0 billion and $3.1 billion, adjusted EBITDA of $320 million to $350 million, and non-GAAP EPS of $4.00 to $4.45 [5][25] - Fourth-quarter consolidated revenue from continuing operations declined 5.2% year-over-year to $574.6 million, while consolidated gross margin improved by 284 basis points to 36.3% [13] - The fourth-quarter adjusted EBITDA was $61.5 million, exceeding prior outlooks, and the adjusted EBITDA margin for the year was 11.4%, within the company's target range [11][13] Business Segments - Within Progressive Leasing, GMV fell 10.6% year-over-year, primarily due to a large partner bankruptcy and tighter approval processes, but underlying GMV grew 1% when excluding specific impacts [9][12] - The Four Technologies platform achieved about 170% revenue growth in 2025, marking its ninth consecutive quarter of triple-digit growth [7] - The MoneyApp and Four platforms contributed approximately $45 million in incremental leasing GMV in 2025, reflecting successful cross-selling efforts [1][6] Strategic Actions - The company completed the acquisition of Purchasing Power in January 2026, which is expected to enhance its growth platform and diversify its offerings [5][14] - Management emphasized portfolio repositioning and capital allocation, including the sale of the Vive portfolio to focus on higher-return opportunities [14] - The company plans to reduce net leverage from approximately 2.5 times post-acquisition to a long-term target of 1.5 to 2 times [15][16] 2026 Outlook - The company anticipates a challenging consumer environment in 2026, with expectations for modest growth and further gross margin expansion [17][18] - For Purchasing Power, projected revenue for 2026 is between $680 million and $730 million, with an adjusted EBITDA expectation of $50 million to $60 million [19] - Management expects continued write-offs to remain within the 6% to 8% target range, with no significant changes in decision-making posture anticipated [20][21]

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]

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] - Q4 consolidated revenues from continued operations declined 5.2% year-over-year to $574.6 million, reflecting a smaller leasing portfolio [32] Business Line Data and Key Metrics Changes - Progressive Leasing's GMV declined 10.6% year-over-year in Q4, primarily due to the impact of the Big Lots bankruptcy and intentional tightening actions [28] - Excluding the impact of Big Lots and decisioning, underlying GMV grew 1% year-over-year [29] - Four Technologies delivered approximately $736 million of GMV in 2025, representing 144% growth year-over-year, and generated approximately $10 million of adjusted EBITDA [31][18] Market Data and Key Metrics Changes - The retail and consumer environment remained challenging, particularly in the categories served by the company, with significant disruption following the bankruptcy of a large retail partner [4] - The company began 2026 with a smaller lease portfolio, down 9.4% year-over-year, creating revenue headwinds [22] Company Strategy and Development Direction - The company is focused on a three-pillar strategy: grow, enhance, and expand, with an emphasis on a multiproduct offering [11][23] - The acquisition of Purchasing Power is expected to expand offerings into a differentiated channel and align with the long-term strategy [8][19] - The company aims to leverage its ecosystem to drive cross-product engagement and enhance customer lifetime value [19][20] 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 [21][22] - The company plans to reinvest in the business while focusing on debt reduction and maintaining a leaner cost structure [23][36] - Management expressed confidence in navigating the challenging environment while continuing to build long-term shareholder value [38] Other Important Information - The company generated strong free cash flow in 2025, allowing for reinvestment in the business and returning capital to shareholders [10][34] - The sale of the Vive portfolio was a strategic realignment of capital, allowing for reinvestment in products with better strategic fit [19] 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 efficiencies as part of the PROG ecosystem [40][41] 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 [45][46] Question: Trends in GMV and retail partnerships - Management noted a slight rebound in GMV trends towards the end of 2025 and expects to lap headwinds from bankrupt partners in 2026, leading to improved results [71][72]

PROG Holdings, Inc. Q4 2025 Earnings Supplement February 18, 2026 PROG Internal Use of Forward-Looking Statements Statements, estimates and projections in this earnings supplement regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminolo ...

Core Insights - PROG Holdings, Inc. reported financial results for Q4 and full-year 2025, highlighting disciplined execution and the resilience of its multi-product platform [1] Financial Performance - The company demonstrated strength despite a challenging retail environment [1] - Specific financial metrics for Q4 and full-year 2025 were not detailed in the provided text [1]

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 [7][28] - Consolidated revenue for Q3 was $595.1 million, reflecting a slight decline compared to $606.1 million in the same period last year [27][28] - Consolidated adjusted EBITDA was $67 million, or 11.3% of revenue, compared to $63.5 million, or 10.5% of revenue in Q3 of 2024 [27][28] Business Line Data and Key Metrics Changes - Progressive Leasing GMV was $410.9 million, representing 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 [23][24] - Revenue for Progressive Leasing was down approximately 4.5% at $556.6 million compared to $582.6 million in the prior year [24] - Four Technologies delivered triple-digit revenue growth for the eighth consecutive quarter, with a year-to-date adjusted EBITDA of $11.1 million, representing a 23% margin on revenue [18][19] Market Data and Key Metrics Changes - E-commerce GMV accounted for 23% of total Progressive Leasing GMV in Q3 2025, up from 20.9% in Q2 and 16.6% in Q3 2024 [13] - The overall demand environment remains soft across many durable goods categories, which is expected to continue into Q4 [21] Company Strategy and Development Direction - The company is focused on improving capital efficiency and profitability through the sale of the VIVE Financial Credit Card Receivables Portfolio, which strengthens the balance sheet and allows for better capital allocation [11][29] - Strategic priorities include investing in growth, exploring M&A opportunities, and returning excess cash to shareholders through share repurchases and dividends [12][29] Management's Comments on Operating Environment and Future Outlook - Management noted persistent consumer challenges due to inflationary pressures and financial stress among lower-income households, impacting discretionary spending [8][21] - The company anticipates that GMV pressures will continue into Q4, with expectations for improvement in Q1 2026 as the toughest year-over-year comparisons will roll off [36][52] Other Important Information - The company ended Q3 with $292.6 million in cash and $600 million of gross debt, resulting in a net leverage ratio of 1.1 times [29][30] - The sale of the VIVE portfolio is expected to provide approximately $150 million, enhancing liquidity and creating flexibility for future investments [29][30] Q&A Session Summary Question: Update on consumer pulse amid economic pressures - Management acknowledged elevated delinquencies but noted improvements in write-offs due to prior tightening actions, indicating a cautious but stable portfolio [34][35] Question: GMV outlook for the rest of the year - Management indicated that Q3 was a tough comp and that pressures would likely persist into Q4, with expectations for improvement in Q1 2026 [36][37] Question: Discussion on trade down effects - Management noted that while there has been tightening in the market, they have not observed significant trade down effects impacting their customer base [45][46] Question: Insights on Four Technologies and customer acquisition - Management highlighted that Four Technologies has seen organic growth driven by referrals and user-generated content, indicating strong customer engagement [85]