PROG Holdings Reports First Quarter 2025 Results
-- Consolidated revenues of $684.1 million; Net earnings of $34.7 million
-- Adjusted EBITDA of $70.3 million
-- Diluted EPS of $0.83; Non-GAAP Diluted EPS of $0.90
-- Progressive Leasing GMV of $402.0 million
-- Four Technologies grows GMV 145.7%; Attains quarterly positive Adjusted
EBITDA
SALT LAKE CITY--(BUSINESS WIRE)--April 23, 2025--
PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Vive Financial, Four Technologies, and Build, today announced financial results for the first quarter ended March 31, 2025.
"We're pleased to report first quarter results with both earnings and non-GAAP diluted EPS coming in above the high end of our outlook - a reflection of disciplined execution across the business" said PROG Holdings President and CEO, Steve Michaels. "Our ecosystem strategy is continuing to progress with Four, our BNPL platform, delivering triple-digit GMV growth for the sixth quarter in a row, while achieving its first quarter of positive adjusted EBITDA. Additionally, our cross-sell initiatives are starting to show real traction and are contributing to Progressive Leasing's GMV."
Michaels continued, "Regarding Progressive Leasing's GMV, we felt the impact of the loss of a major retail partner due to its bankruptcy in late 2024. But even with that headwind, we delivered application and GMV growth across the rest of the business, thanks to the execution of our strategic and operational initiatives in sales, marketing, and technology. Those efforts are helping us win balance of share with several of our key partners. The Progressive Leasing team also continues to proactively manage the portfolio as we target annual write-offs in the range of 6-8%. The macro backdrop deteriorated as the quarter progressed, and our retail partners and customers are not immune to those challenges. But we're focused on what we can control - executing our strategy, managing the portfolio, and remaining disciplined with spend. Our business model is resilient and has delivered strong results in many different economic environments. Even with the current macroeconomic uncertainty resulting in a downward revision to our full year outlook, we're generating strong profitability and cash flows which we believe will allow us to come through this challenging period stronger and better equipped to support our retail partners and consumers" concluded Michaels.
Consolidated Results
Consolidated revenues for the first quarter of 2025 were $684.1 million, an increase of 6.6% from the same period in 2024.
Consolidated net earnings for the quarter were $34.7 million, compared with $22.0 million in the prior year period. The effective income tax rate was 26.5% in the first quarter. Adjusted EBITDA for the quarter was $70.3 million, or 10.3% of revenues, compared with $72.6 million, or 11.3% of revenues for the same period in 2024.
Diluted earnings per share for the first quarter of 2025 were $0.83, compared with $0.49 in the year ago period. On a non-GAAP basis, diluted earnings per share were essentially flat at $0.90 in the first quarter of 2025, compared with $0.91 for the same period in 2024. The Company's diluted weighted average shares outstanding in the first quarter were 6.0% lower year-over-year.
Progressive Leasing Results
Progressive Leasing's first quarter GMV of $402.0 million was down 4.0% compared to the same period in 2024. The provision for lease merchandise write-offs for the quarter was 7.4%, within the Company's 6-8% targeted annual range.
Liquidity and Capital Allocation
PROG Holdings ended the first quarter of 2025 with cash of $213.3 million and gross debt of $600.0 million. The Company repurchased $26.1 million of its stock in the quarter at an average price of $27.90 per share, leaving $335.2 million of repurchase capacity under its $500 million share repurchase program. Additionally, the Company paid a quarterly cash dividend of $0.13 per share.
2025 Outlook
In light of the deterioration in the macroeconomic environment since the Company issued its full-year outlook on February 19, 2025, the Company is updating its full year 2025 outlook for revenue and earnings as well as providing guidance for the second quarter of 2025. The updated outlook below assumes a difficult operating environment with soft demand for consumer durable goods, no material changes in the Company's current decisioning posture, an effective tax rate for Non-GAAP EPS of approximately 28%, and no impact from additional share repurchases. Additionally, the company has not assumed a recession which, among other factors, would likely be accompanied by a rise in the unemployment rate.
Revised 2025 Outlook Previous 2025 Outlook
------------------------ --------------------------
(In thousands,
except per
share amounts) Low High Low High
----------- ----------- ----------- -------------
PROG Holdings -
Total
Revenues $2,425,000 $2,500,000 $2,515,000 $2,590,000
PROG Holdings -
Net Earnings 109,000 125,000 115,500 133,500
PROG Holdings -
Adjusted
EBITDA 245,000 265,000 260,000 280,000
PROG Holdings -
Diluted EPS 2.62 3.01 2.82 3.22
PROG Holdings -
Diluted
Non-GAAP EPS 2.90 3.30 3.10 3.50
Progressive
Leasing -
Total
Revenues 2,300,000 2,360,000 2,385,000 2,445,000
Progressive
Leasing -
Earnings
Before Taxes 168,000 185,000 181,000 195,000
Progressive
Leasing -
Adjusted
EBITDA 245,000 261,000 260,000 275,000
Vive - Total
Revenues 60,000 65,000 65,000 70,000
Vive - Loss
Before Taxes (5,000) (3,500) (5,500) (2,500)
Vive - Adjusted
EBITDA (2,500) (1,000) (2,500) --
Other - Total
Revenues 65,000 75,000 65,000 75,000
Other - Loss
Before Taxes (9,000) (7,500) (9,000) (6,000)
Other -
Adjusted
EBITDA 2,500 5,000 2,500 5,000
Three Months Ended
June 30, 2025 Outlook
--------------------------
(In thousands, except per share amounts) Low High
-------------- ----------
PROG Holdings - Total Revenues $ 575,000 $ 595,000
PROG Holdings - Net Earnings 28,000 32,000
PROG Holdings - Adjusted EBITDA 61,000 66,000
PROG Holdings - Diluted EPS 0.68 0.77
PROG Holdings - Diluted Non-GAAP EPS 0.75 0.85
Conference Call and Webcast
The Company has scheduled a live webcast and conference call for Wednesday, April 23, 2025, at 8:30 A.M. ET to discuss its financial results for the first quarter of 2025. To access the live webcast, visit the Events and Presentations page of the Company's Investor Relations website, https://investor.progholdings.com/.
About PROG Holdings, Inc.
PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in Salt Lake City, UT, that provides transparent and competitive payment options to consumers. The Company owns Progressive Leasing, a leading provider of e-commerce, app-based, and in-store point-of-sale lease-to-own solutions, Vive Financial, an omnichannel provider of second-look revolving credit products, Four Technologies, a provider of Buy Now, Pay Later payment options through its platform, Four, and Build, provider of personal credit building products. More information on PROG Holdings and its companies can be found at https://investor.progholdings.com/.
Forward Looking Statements:
Statements in this press release 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 terminology, such as "continuing", "starting", "target", "uncertainty", "believe", "will", "outlook", "assumes" and similar forward-looking terminology. These risks and uncertainties include factors such as (i) continued volatility and challenges in the macro-economic environment and, in particular, the unfavorable effects on our businesses from the impacts of inflation, a higher cost of living, the imposition of significant tariffs on imported goods and elevated interest rates, and the impact of those headwinds on: (a) consumer confidence and customer demand for the merchandise that our retail partners sell, in particular consumer durables, such as home appliances, electronics and furniture; (b) our customers' disposable income and their ability to make the lease and loan payments they owe the Company; (c) the availability of consumer credit; and (d) our overall financial performance and outlook; (ii) the impact of the uncertain macro-economic environment on our proprietary algorithms and decisioning tools that we use to approve customers such that they are no longer indicative of our customers' ability to perform, which in turn may limit the ability of our businesses to manage risk, avoid lease and loan charge-offs and may result in insufficient reserves to cover actual losses; (iii) a large percentage of Progressive Leasing's revenue being concentrated with several key retail partners, and the loss of any of these retail partner relationships materially and adversely affecting several aspects of our performance; (iv) Progressive Leasing being unable to attract additional retail partners and retain and grow its
relationships with its existing retail partners, resulting in several aspects of our performance being materially and adversely affected; (v) Progressive Leasing being unable to attract new consumers and retain and grow its relationships with its existing customers materially and adversely affecting several aspects of our performance; (vi) Vive and Four's business models differing significantly from Progressive Leasing's lease-to-own business, which means each of these businesses have different risk profiles; (vii) our efforts to modernize and enhance certain enterprise-wide information management systems and technologies adversely impacting our businesses and operations; (viii) our inability to protect confidential, proprietary, or sensitive information, including the confidential information of our customers, being adversely affected by cyber-attacks or similar disruptions, which may result in significant costs, litigation and reputational damage or otherwise have a material adverse impact on several aspects of our performance; (ix) the inability of our businesses to successfully operate in highly and increasingly competitive industries materially and adversely affecting several aspects of our performance; (x) our business, results of operations, financial condition, and prospects being materially and adversely affected due to Progressive Leasing failing to maintain a consistently high level of consumer satisfaction and trust in its brand; (xi) our businesses being subject to extensive federal, state and local laws and regulations, including certain laws and regulations unique to the industries in which our businesses operate, that may subject them to government investigations and significant monetary penalties, remediation expenses and compliance-related burdens that may result in them changing the manner in which they operate, which may be materially adverse to several aspects of our performance; (xii) our performance being materially and adversely affected due to the transactions offered to consumers by our businesses being negatively characterized by federal, state and local government officials, consumer advocacy groups and the media; (xiii) our capital allocation strategy and financial policies, including our current stock repurchase and dividend programs, as well as any potential debt repurchase program not being effective at enhancing shareholder value, or providing other benefits we expect; (xiv) any significant disruption in our vendors' information technology systems, or disruptions in the information our businesses rely on in their lease and loan decisioning, materially and adversely affecting several aspects of our performance; and (xv) the other risks and uncertainties discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 19, 2025. Statements in this press release that are "forward-looking" include without limitation statements about: (i) the progress of our ecosystem strategy and cross-sell initiatives and the benefits we expect from them; (ii) growing our balance of share with key retail partners; (iii) the performance of our lease portfolio, including our annual write-offs; and (iv) our outlook for the remainder of 2025, including the guidance we provide for the second quarter. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the date of this press release.
PROG Holdings, Inc.
Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
-------------------------
2025 2024
--------------------------------------------- ------------ -----------
REVENUES:
Lease Revenues and Fees $ 651,557 $620,550
Interest and Fees on Loans Receivable 32,531 21,320
------- -------
684,088 641,870
COSTS AND EXPENSES:
Depreciation of Lease Merchandise 460,443 431,571
Provision for Lease Merchandise Write-offs 48,018 43,141
Operating Expenses 119,306 127,341
------- -------
627,767 602,053
------- -------
OPERATING PROFIT 56,321 39,817
Interest Expense, Net (9,090) (8,250)
------- -------
EARNINGS BEFORE INCOME TAX EXPENSE 47,231 31,567
INCOME TAX EXPENSE 12,513 9,601
------- -------
NET EARNINGS $ 34,718 $ 21,966
======= =======
EARNINGS PER SHARE
Basic $ 0.85 $ 0.50
------- -------
Diluted $ 0.83 $ 0.49
------- -------
CASH DIVIDENDS DECLARED PER SHARE:
Common Stock $ 0.13 $ 0.12
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 40,841 43,695
Diluted 41,851 44,528
PROG Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
March 31, December 31,
2025 2024
------------------------------------ ------------ -----------------
ASSETS:
Cash and Cash Equivalents $ 213,301 $ 95,655
Accounts Receivable (net of
allowances of $73,868 in 2025 and
$71,607 in 2024) 66,576 80,225
Lease Merchandise (net of
accumulated depreciation and
allowances of $443,055 in 2025
and $440,831 in 2024) 555,399 680,242
Loans Receivable (net of
allowances and unamortized fees
of $56,566 in 2025 and $57,342 in
2024) 135,411 146,985
Property and Equipment, Net 21,227 21,443
Operating Lease Right-of-Use
Assets 3,729 4,035
Goodwill 296,061 296,061
Other Intangibles, Net 69,775 73,775
Income Tax Receivable 9,342 10,644
Deferred Income Tax Assets 26,472 26,472
Prepaid Expenses and Other Assets 72,620 78,230
---------- ----------
Total Assets $ 1,469,913 $ 1,513,767
========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY:
Accounts Payable and Accrued
Expenses $ 110,773 $ 93,190
Deferred Income Tax Liabilities 64,392 74,320
Customer Deposits and Advance
Payments 36,246 40,917
Operating Lease Liabilities 10,167 11,496
Debt, Net 593,887 643,563
---------- ----------
Total Liabilities 815,465 863,486
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per
Share: Authorized: 225,000,000
Shares at March 31, 2025 and
December 31, 2024; Shares Issued:
82,078,654 at March 31, 2025 and
December 31, 2024 41,039 41,039
Additional Paid-in Capital 345,282 358,538
Retained Earnings 1,498,703 1,469,450
---------- ----------
1,885,024 1,869,027
Less: Treasury Shares at Cost
Common Stock: 41,724,642 Shares at
March 31, 2025 and 41,262,901 at
December 31, 2024 (1,230,576) (1,218,746)
---------- ----------
Total Shareholders' Equity 654,448 650,281
---------- ----------
Total Liabilities & Shareholders'
Equity $ 1,469,913 $ 1,513,767
========== ==========
PROG Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended March 31,
----------------------------------
2025 2024
------------------------------------ ----------------- ---------------
OPERATING ACTIVITIES:
Net Earnings $ 34,718 $ 21,966
Adjustments to Reconcile Net
Earnings to Cash Provided by
Operating Activities:
Depreciation of Lease
Merchandise 460,443 431,571
Other Depreciation and
Amortization 6,122 8,018
Provisions for Accounts
Receivable and Loan Losses 98,958 85,405
Stock-Based Compensation 7,902 6,642
Deferred Income Taxes (9,928) (8,656)
Impairment of Assets -- 6,018
Non-Cash Lease Expense (1,025) (615)
Other Changes, Net (15) 115
Changes in Operating Assets and
Liabilities:
Additions to Lease Merchandise (385,254) (400,479)
Book Value of Lease
Merchandise Sold or Disposed 49,654 44,916
Accounts Receivable (70,947) (68,520)
Prepaid Expenses and Other
Assets 5,533 1,829
Income Tax Receivable and
Payable 22,200 21,076
Accounts Payable and Accrued
Expenses (3,761) (11,358)
Customer Deposits and Advance
Payments (4,671) (2,195)
------------ -----------
Cash Provided by Operating
Activities 209,929 135,733
------------ -----------
INVESTING ACTIVITIES:
Investments in Loans Receivable (165,883) (76,963)
Proceeds from Loans Receivable 163,753 75,448
Purchases of Property and
Equipment (1,962) (2,096)
Proceeds from Sale of Property
and Equipment -- 14
------------ -----------
Cash Used in Investing Activities (4,092) (3,597)
------------ -----------
FINANCING ACTIVITIES:
Repayments on Revolving Facility (50,000) --
Dividends Paid (5,265) (5,221)
Acquisition of Treasury Stock (26,119) (24,437)
Issuance of Stock Under Stock
Option and Employee Purchase
Plans 325 123
Cash Paid for Shares Withheld for
Employee Taxes (7,048) (5,191)
Debt Issuance Costs (84) --
------------ -----------
Cash Used in Financing Activities (88,191) (34,726)
------------ -----------
Increase in Cash and Cash
Equivalents 117,646 97,410
Cash and Cash Equivalents at
Beginning of Period 95,655 155,416
------------ -----------
Cash and Cash Equivalents at End
of Period $ 213,301 $ 252,826
============ ===========
Net Cash Paid (Received) During
the Period:
Interest $ 509 $ 224
Income Taxes $ 300 $ (3,836)
PROG Holdings, Inc.
Quarterly Revenues by Segment
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2025
----------------------------------------------------------
Progressive Leasing Vive Other Consolidated Total
------------------- ------- ------- -------------------
Lease Revenues
and Fees $ 651,557 $ -- $ -- $ 651,557
Interest and
Fees on Loans
Receivable -- 15,660 16,871 32,531
--- -------------- ------ ------ --- --------------
Total Revenues $ 651,557 $15,660 $16,871 $ 684,088
=== ============== ====== ====== === ==============
(Unaudited)
Three Months Ended
March 31, 2024
---------------------------------------------------------
Progressive Leasing Vive Other Consolidated Total
------------------- ------- ------ -------------------
Lease Revenues
and Fees $ 620,550 $ -- $ -- $ 620,550
Interest and
Fees on Loans
Receivable -- 16,051 5,269 21,320
--- -------------- ------ ----- --- --------------
Total Revenues $ 620,550 $16,051 $5,269 $ 641,870
=== ============== ====== ===== === ==============
PROG Holdings, Inc.
Gross Merchandise Volume by Quarter
(In thousands)
(Unaudited)
Three Months Ended March 31,
--------------------------------
2025 2024
----------------- -------------
Progressive Leasing $ 401,962 $ 418,512
Vive 36,272 31,602
Other 119,863 48,791
------------- ------------
Total GMV $ 558,097 $ 498,905
============= ============
Use of Non-GAAP Financial Information:
Non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA are supplemental measures of our performance that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Non-GAAP diluted earnings per share for the full year 2025 and second quarter 2025 outlook excludes intangible amortization expense. Non-GAAP net earnings and non-GAAP diluted earnings per share for the three months ended March 31, 2025 exclude intangible amortization expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. Non-GAAP net earnings and non-GAAP diluted earnings per share for the three months ended March 31, 2024 exclude intangible amortization expense, restructuring expenses, costs related to the cybersecurity incident, and accrued interest on an uncertain tax position related to Progressive Leasing's $175 million settlement with the FTC in 2020. The amount for the after-tax non-GAAP adjustment, which is tax effected using our statutory tax rate, can be found in the reconciliation of net earnings and diluted earnings per share to non-GAAP net earnings and diluted earnings per share table in this press release.
The Adjusted EBITDA figures presented in this press release are calculated as the Company's earnings before interest expense, net, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the full year 2025 and second quarter 2025 outlook excludes stock-based compensation expense. Adjusted EBITDA for the three months ended March 31, 2025 excludes stock-based compensation expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. Adjusted EBITDA for the three months ended March 31, 2024 excludes stock-based compensation expense, restructuring expenses, and costs related to the cybersecurity incident. The amounts for these pre-tax non-GAAP adjustments can be found in the segment EBITDA tables in this press release.
Management believes that non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA provide relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and business unit performance.
Non-GAAP net earnings, non-GAAP diluted earnings, and adjusted EBITDA provide management and investors with an understanding of the results from the primary operations of our business by excluding the effects of certain items that generally arose from larger, one-time transactions that are not reflective of the ordinary earnings activity of our operations or transactions that have variability and volatility of the amount. We believe the exclusion of stock-based compensation expense provides for a better comparison of our operating results with our peer companies as the calculations of stock-based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types. This measure may be useful to an investor in evaluating the underlying operating performance of our business.
Adjusted EBITDA also provides management and investors with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. These measures may be useful to an investor in evaluating our operating performance because the measures:
-- Are widely used by investors to measure a company's operating performance
without regard to items excluded from the calculation of such measure,
which can vary substantially from company to company depending upon
accounting methods, book value of assets, capital structure and the
method by which assets were acquired, among other factors.
-- Are used by rating agencies, lenders and other parties to evaluate our
creditworthiness.
-- Are used by our management for various purposes, including as a measure
of performance of our operating entities and as a basis for strategic
planning and forecasting.
Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company's GAAP basis net earnings and diluted earnings per share and the GAAP revenues and earnings before income taxes of the Company's segments, which are also presented in the press release. Further, we caution investors that amounts presented in accordance with our definitions of non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner.
PROG Holdings, Inc.
Reconciliation of Net Earnings and Diluted Earnings Per Share to
Non-GAAP Net Earnings and Diluted Earnings Per Share
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
------------------------
2025 2024
------------ ----------
Net Earnings $ 34,718 $21,966
Add: Intangible Amortization Expense 4,001 5,650
Add: Restructuring Expense 6 18,014
Add: Costs Related to the Cybersecurity
Incident, Net of Insurance Recoveries (24) 116
Less: Tax Impact of Adjustments(1) (1,036) (6,183)
Add: Accrued Interest on Uncertain Tax
Position -- 1,078
------- ------
Non-GAAP Net Earnings $ 37,665 $40,641
======= ======
Diluted Earnings Per Share $ 0.83 $ 0.49
Add: Intangible Amortization Expense 0.10 0.13
Add: Restructuring Expense -- 0.40
Add: Costs Related to the Cybersecurity
Incident, Net of Insurance Recoveries -- --
Less: Tax Impact of Adjustments(1) (0.02) (0.14)
Add: Accrued Interest on Uncertain Tax
Position -- 0.02
------- ------
Non-GAAP Diluted Earnings Per Share(2) $ 0.90 $ 0.91
======= ======
Diluted Weighted Average Shares Outstanding 41,851 44,528
(1) Adjustments are tax-effected using an assumed statutory tax rate of
26%.
(2) In some cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
PROG Holdings, Inc.
Non-GAAP Financial Information
Quarterly Segment EBITDA
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2025
--------------------------------------------------
Progressive Consolidated
Leasing Vive Other Total
--------------- ------ ------- ----------------
Net Earnings $ 34,718
Income Tax
Expense(1) 12,513
------- ---
Earnings (Loss)
Before Income
Tax Expense $ 48,625 $(833) $ (561) 47,231
Interest
Expense, Net 7,163 186 1,741 9,090
Depreciation 1,357 147 617 2,121
Amortization 3,771 -- 230 4,001
------- ---- ----- ------- ---
EBITDA 60,916 $(500.SI)$ 2,027 62,443
Stock-Based
Compensation 6,307 312 1,283 7,902
Restructuring
Expense 6 -- -- 6
Costs Related
to the
Cybersecurity
Incident, Net
of Insurance
Recoveries (24) -- -- (24)
------- ---- ----- -------
Adjusted EBITDA $ 67,205 $(188) $3,310 $ 70,327
======= ==== ===== ======= ===
(1) Taxes are calculated on a consolidated basis and are not identifiable
by Company segment.
(Unaudited)
Three Months Ended
March 31, 2024
--------------------------------------------
Progressive Consolidated
Leasing Vive Other Total
------------ ------ -------- ------------
Net Earnings $ 21,966
Income Tax
Expense(1) 9,601
-----------
Earnings (Loss)
Before Income
Tax Expense $ 35,453 $ 918 $(4,804) 31,567
Interest
Expense, Net 8,567 -- (317) 8,250
Depreciation 1,810 166 392 2,368
Amortization 5,421 -- 229 5,650
----------- ----- ------ -----------
EBITDA 51,251 1,084 (4,500) 47,835
Stock-Based
Compensation 4,711 338 1,593 6,642
Restructuring
Expense 18,014 -- -- 18,014
Costs Related
to the
Cybersecurity
Incident 116 -- -- 116
----------- ----- ------ -----------
Adjusted EBITDA $ 74,092 $1,422 $(2,907) $ 72,607
=========== ===== ====== ===========
(1) Taxes are calculated on a consolidated basis and are not identifiable
by Company segment.
PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of Revised Full Year 2025 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2025 Ranges
----------------------------------------------------------------------------------
Progressive Leasing Vive Other Consolidated Total
------------------- ------------------- ------------------- -------------------
Estimated Net
Earnings $109,000 - $125,000
Income Tax
Expense(1) 45,000 - 49,000
-------------------
Projected
Earnings (Loss)
Before Income
Tax Expense $168,000 - 185,000 $(5,000) - $(3,500) $(9,000) - $(7,500) 154,000 - 174,000
Interest
Expense, Net 30,000 - 28,000 1,000 6,000 37,000 - 35,000
Depreciation 6,000 500 2,500 9,000
Amortization 15,000 -- 1,000 16,000
------------------- ------------------- ------------------- -------------------
Projected EBITDA 219,000 - 234,000 $(3,500) - $(2,000) 500 - 2,000 216,000 - 234,000
Stock-Based
Compensation 26,000 - 27,000 1,000 2,000 - 3,000 29,000 - 31,000
------------------- ------------------- ------------------- -------------------
Projected
Adjusted EBITDA $245,000 - $261,000 $(2,500) - $(1,000) $2,500 - $5,000 $245,000 - $265,000
=================== =================== =================== ===================
(1) Taxes are calculated on a consolidated basis and are not identifiable
by Company segment.
PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of Previous Full Year 2025 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2025 Ranges
----------------------------------------------------------------------------------
Progressive Leasing Vive Other Consolidated Total
------------------- ------------------- ------------------- -------------------
Estimated Net
Earnings $115,500 - $133,500
Income Tax
Expense(1) 51,000 - 53,000
-------------------
Projected
Earnings (Loss)
Before Income
Tax Expense $181,000 - $195,000 $(5,500) - $(2,500) $(9,000) - $(6,000) 166,500 - 186,500
Interest
Expense, Net 30,000 - 28,000 1,500 - 1,000 6,000 - 5,000 37,500 - 34,000
Depreciation 6,000 - 7,000 500 2,500 9,000 - 10,000
Amortization 15,000 -- 1,000 16,000
------------------- ------------------- ------------------- -------------------
Projected EBITDA 232,000 - 245,000 (3,500) - (1,000) 500 - 2,500 229,000 - 246,500
Stock-Based
Compensation 28,000 - 30,000 1,000 2,000 - 2,500 31,000 - 33,500
------------------- ------------------- ------------------- -------------------
Projected
Adjusted EBITDA $260,000 - $275,000 $(2,500) - $0 $2,500 - $5,000 $260,000 - $280,000
=================== =================== =================== ===================
(1) Taxes are calculated on a consolidated basis and are not identifiable
by Company segment.
PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of the Three Months Ended June 30, 2025 Outlook for Adjusted
EBITDA
(In thousands)
Three Months Ended
June 30, 2025
-----------------------
Consolidated Total
-----------------------
Estimated Net Earnings $28,000 - $32,000
Income Tax Expense(1) 11,000 - 12,000
-----------------------
Projected Earnings Before Income Tax Expense 39,000 - 44,000
Interest Expense, Net 8,000
Depreciation 2,000
Amortization 4,000
-----------------------
Projected EBITDA 53,000 - 58,000
Stock-Based Compensation 8,000
-----------------------
Projected Adjusted EBITDA $61,000 - $66,000
=======================
(1) Taxes are calculated on a consolidated basis and are not identifiable
by Company segment.
PROG Holdings, Inc.
Reconciliation of Revised Full Year 2025 Outlook for Diluted Earnings
Per Share
to Non-GAAP Diluted Earnings Per Share
Full Year 2025
-----------------------
Low High
----------- ----------
Projected Diluted Earnings Per Share $ 2.62 $ 3.01
Add: Projected Intangible Amortization
Expense 0.39 0.39
Subtract: Tax Effect on Non-GAAP
Adjustments(1) (0.10) (0.10)
------ ------
Projected Non-GAAP Diluted Earnings Per
Share(2) $ 2.90 $ 3.30
====== ======
(1) Adjustments are tax-effected using an assumed statutory tax rate of
26%.
(2) In some cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
PROG Holdings, Inc.
Reconciliation of Previous Full Year 2025 Outlook for Diluted Earnings
Per Share
to Non-GAAP Diluted Earnings Per Share
Full Year 2025
-----------------------
Low High
----------- ----------
Projected Diluted Earnings Per Share $ 2.82 $ 3.22
Add: Projected Intangible Amortization
Expense 0.38 0.38
Subtract: Tax Effect on Non-GAAP
Adjustments(1) (0.10) (0.10)
------ ------
Projected Non-GAAP Diluted Earnings Per
Share(2) $ 3.10 $ 3.50
====== ======
(1) Adjustments are tax-effected using an assumed statutory tax rate of
26%.
(2) In some cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
PROG Holdings, Inc.
Reconciliation of the Three Months Ended June 30, 2025 Outlook for
Diluted
Earnings Per Share to Non-GAAP Diluted Earnings Per Share
Three Months Ended
June 30, 2025
------------------------
Low High
------------- ---------
Projected Diluted Earnings Per Share $ 0.68 $ 0.77
Add: Projected Intangible Amortization Expense 0.10 0.10
Subtract: Tax Effect on Non-GAAP
Adjustments(1) (0.03) (0.03)
--- ------- -----
Projected Non-GAAP Diluted Earnings Per
Share(2) $ 0.75 $ 0.85
=== ======= =====
(1) Adjustments are tax-effected using an assumed statutory tax rate of
26%.
(2) In some cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250423239628/en/
CONTACT: Investor Contact
John A. Baugh, CFA
Vice President, Investor Relations
john.baugh@progleasing.com
(END) Dow Jones Newswires
April 23, 2025 07:30 ET (11:30 GMT)
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