PROG (NYSE:PRG) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Company ParticipantsAlessandra Jimenez - Senior Equity Research AssociateBrad Thomas - Associate Director of ResearchBrian Garner - CFOHarold Goetsch - Senior Managing Director and Head of Fintech and FinancialsHoang Nguyen - Equity ResearchJohn Baugh - VP of Investor RelationsKyle Joseph - Managing DirectorSteve Michaels - President and CEOConference Call ParticipantsAnthony Chukumba - Managing Director and Senior Research AnalystEunice Ah ...

PROG (NYSE:PRG) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Company ParticipantsAlessandra Jimenez - Senior Equity Research AssociateBrad Thomas - Associate Director of ResearchBrian Garner - CFOHarold Goetsch - Senior Managing Director and Head of Fintech and FinancialsHoang Nguyen - Equity ResearchJohn Baugh - VP of Investor RelationsKyle Joseph - Managing DirectorSteve Michaels - President and CEOConference Call ParticipantsAnthony Chukumba - Managing Director and Senior Research AnalystEunice Ah ...

PROG (NYSE:PRG) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Speaker9Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, John Baugh, Vice President of Investor Relations. Please go ahead.Speaker7Thank you, and good morning, everyone. Welcome to the PROG Holdings fourth quarter 2025 earnings call. Joining me this morning are Steve Michaels, PROG Holdings President and Chief Executive Officer, and Brian Garner, our Chief ...

SALT LAKE CITY--(BUSINESS WIRE)--PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Purchasing Power, Four Technologies and MoneyApp today announced financial results for the fourth quarter ended December 31, 2025. "Q4 and full-year 2025 were periods of disciplined execution that demonstrated the strength and resilience of PROG's multi-product platform,†said PROG Holdings President and CEO Steve Michaels. "Despite a challenging retail environment and the impac. ...

Financial Data and Key Metrics Changes - Non-GAAP EPS for Q2 was $1.02, significantly exceeding the outlook range of $0.75 to $0.85 per share [5][20] - Consolidated revenue reached $604.7 million, reflecting low single-digit growth year-over-year [7][27] - Consolidated adjusted EBITDA was $73.5 million, slightly up from $72.3 million in Q2 of the previous year [8][27] Business Line Data and Key Metrics Changes - Progressive Leasing's GMV was $413.9 million, down 8.9% year-over-year, primarily due to the Big Lots bankruptcy and tightening of approval rates [21][22] - Four Technologies delivered over 200% revenue growth, contributing significantly to overall performance [8][27] - Write-offs for Q2 were 7.5%, which is 20 basis points better than the previous year, indicating effective portfolio management [9][25] Market Data and Key Metrics Changes - E-commerce represented approximately 21% of total leasing GMV, marking an all-time high for Progressive Leasing [10] - Millennials and Gen Z account for about 70% of GMV, highlighting a shift in customer demographics [24] Company Strategy and Development Direction - The company is focused on improving results through pipeline opportunities, online platform expansion, and enhancing customer experiences [5][11] - Strategic pillars include growth, enhancement of technology, and expansion of services, with a commitment to sustainable unit economics [11][13] - The company is exploring strategic M&A opportunities while maintaining a balanced approach to capital returns [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing softness in demand for consumer durable goods but expressed confidence in the ability to gain market share and drive sustainable growth [18][30] - The outlook for 2025 includes consolidated revenues projected between $2.45 billion and $2.5 billion, with adjusted EBITDA between $255 million and $265 million [30][31] Other Important Information - The company ended Q2 with $222 million in cash and $600 million in gross debt, resulting in a net leverage ratio of 1.38x [27][28] - The recent legislative changes are expected to positively impact cash tax outlook by allowing immediate expensing of lease merchandise [28] Q&A Session Summary Question: What is the underlying growth considering the Big Lots bankruptcy and underwriting tightening? - Management indicated that excluding Big Lots, GMV would have been up approximately 1%, and the tightening actions contributed an additional 800 to 900 basis points drag on GMV [34][36] Question: What is the outlook for the pipeline with retailers? - Management noted increased engagement with retailers, including RFIs and RFPs, indicating a positive trend in considering leasing products [44] Question: What factors influenced the guidance update for the second half of the year? - Management highlighted that while write-offs were lower than anticipated, the impact of Big Lots and portfolio size would create headwinds in the back half of the year [60][62] Question: How is the company leveraging its customer database for growth? - Management stated that there are synergies between the leasing business and the four platform, with initiatives in place to drive customer acquisition and engagement [76][78] Question: What is the competitive landscape for the subscription product in the BNPL space? - Management acknowledged strong competition but expressed confidence in the value proposition of their four plus subscription service, which has seen robust adoption [94][95]