PRG PROG Holdings Inc

• Consolidated revenues of $623.3 million; Net earnings of $57.5 million
• Adjusted EBITDA of $65.7 million
• Diluted EPS of $1.34; Non-GAAP Diluted EPS of $0.80
• Progressive Leasing GMV of $597.5 million, 9.1% growth year-over-year

PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Vive Financial, Four Technologies, and Build today announced financial results for the fourth quarter ended December 31, 2024.

"We finished 2024 with an excellent fourth quarter, delivering a third consecutive quarter of strong GMV growth and approximating the high end of our outlook ranges for both our revenues and earnings for the period," said PROG Holdings President and CEO Steve Michaels. "2024 was a successful year, driven by better-than-expected GMV growth, disciplined portfolio management, cost efficiencies, and continued execution on multiple strategic fronts. Our teams' execution across sales, marketing, and technology initiatives, combined with tighter credit conditions in the market, played a key role in driving a meaningful increase in new and repeat customers."

"As we move into 2025, we are excited about continuing to execute our three-pillared strategy to grow, enhance, and expand - investing in our businesses with a focus on increasing customer acquisition and lifetime value. We believe our cash-efficient model gives us the financial flexibility to invest in our future growth and return excess cash to shareholders, as we aim to maximize long-term value creation," concluded Michaels.

Consolidated Results

Consolidated revenues for the fourth quarter of 2024 were $623.3 million, an increase of 8.0% from the same period in 2023.

Consolidated net earnings for the quarter were $57.5 million, compared with $18.6 million in the prior year period. The effective income tax rate was (37.5)% in the fourth quarter. The effective income tax rate was negative due to a $27.6 million deferred tax benefit related to an election which resulted in the deemed liquidation of a wholly-owned partnership for tax purposes. Adjusted EBITDA for the quarter was $65.7 million, or 10.5% of revenues, compared with $61.0 million, or 10.6% of revenues for the same period in 2023.

Diluted earnings per share for the fourth quarter of 2024 were $1.34, compared with $0.41 in the year ago period. On a non-GAAP basis, diluted earnings per share were $0.80 in the fourth quarter of 2024, compared with $0.72 for the same period in 2023. The Company's weighted average shares outstanding assuming dilution in the fourth quarter was 5.1% lower year-over-year.

Progressive Leasing Results

Progressive Leasing's fourth quarter GMV of $597.5 million was up 9.1% compared to the same period in 2023. The provision for lease merchandise write-offs for the quarter was 7.9%. For the full year 2024, our provision for lease merchandise write-offs was 7.5%, within our 6-8% targeted annual range.

Liquidity and Capital Allocation

PROG Holdings ended the fourth quarter of 2024 with cash of $95.7 million and gross debt of $650.0 million. The Company repurchased $40.5 million of its stock in the fourth quarter at an average price of $47.03 per share, leaving $361.3 million of repurchase authorization under its $500 million share repurchase program. Additionally, the Company paid a cash dividend of $0.12 per share.

2025 Outlook

PROG Holdings is issuing full year and Q1 2025 outlook for revenues, consolidated net earnings, segment earnings before taxes, adjusted EBITDA, GAAP diluted EPS and non-GAAP diluted EPS. This outlook assumes a difficult operating environment with continued soft demand for consumer durable goods, no material changes in the Company's decisioning posture, an effective tax rate for Non-GAAP EPS of approximately 28%, no material increase in the unemployment rate for our consumer, and no impact from additional share repurchases.

 

Full Year 2025 Outlook

(In thousands, except per share amounts)

Low

High

 

 

 

PROG Holdings - Total Revenues

$

2,515,000

 

$

2,590,000

 

PROG Holdings - Net Earnings

 

115,500

 

 

133,500

 

PROG Holdings - Adjusted EBITDA

 

260,000

 

 

280,000

 

PROG Holdings - Diluted EPS

 

2.82

 

 

3.22

 

PROG Holdings - Diluted Non-GAAP EPS

 

3.10

 

 

3.50

 

 

 

 

Progressive Leasing - Total Revenues

 

2,385,000

 

 

2,445,000

 

Progressive Leasing - Earnings Before Taxes

 

181,000

 

 

195,000

 

Progressive Leasing - Adjusted EBITDA

 

260,000

 

 

275,000

 

 

 

 

Vive - Total Revenues

 

65,000

 

 

70,000

 

Vive - Loss Before Taxes

 

(5,500

)

 

(2,500

)

Vive - Adjusted EBITDA

 

(2,500

)

 

—

 

 

 

 

Other - Total Revenues

 

65,000

 

 

75,000

 

Other - Loss Before Taxes

 

(9,000

)

 

(6,000

)

Other - Adjusted EBITDA

 

2,500

 

 

5,000

 

 

 

Three Months Ended

March 31, 2025 Outlook

(In thousands, except per share amounts)

Low

High

 

 

 

PROG Holdings - Total Revenues

$

665,000

$

685,000

PROG Holdings - Net Earnings

 

28,000

 

32,000

PROG Holdings - Adjusted EBITDA

 

63,000

 

68,000

PROG Holdings - Diluted EPS

 

0.73

 

0.78

PROG Holdings - Diluted Non-GAAP EPS

 

0.80

 

0.85

Conference Call and Webcast

The Company has scheduled a live webcast and conference call for Wednesday, February 19, 2025, at 8:30 A.M. ET to discuss its financial results for the fourth quarter of 2024. 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 news 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", "believe", "aim", "outlook" and similar forward-looking terminology. These risks and uncertainties include factors such as (i) continued volatility and challenges in the macro environment and, in particular, the unfavorable effects on our business of impacts of inflation, a higher cost of living and elevated interest rates, and the impact of those headwinds on: (a) consumer confidence and customer demand for the merchandise that our POS partners sell, in particular consumer durables; (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) 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; (iii) an uncertain macroeconomic environment resulting in our proprietary algorithms and decisioning tools used in approving customers no longer being indicative of their 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; (iv) a large percentage of Progressive Leasing's revenue being concentrated with several key POS partners, and the loss of any of these POS partner relationships materially and adversely affecting several aspects of our performance; (v) Progressive Leasing being unable to attract additional POS partners and retain and grow its relationships with its existing POS partners, resulting in several aspects of our performance being materially and adversely affected; (vi) 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; (vii) 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; (viii) our efforts to modernize and enhance certain enterprise-wide information management systems and technologies adversely impacting our businesses and operations; (ix) 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; (x) 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; (xi) the inability of our businesses to successfully operate in highly and increasingly competitive industries materially and adversely affecting several aspects of our performance; (xii) 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; (xiii) 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; (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) our ability to invest in our businesses to increase customer acquisition and lifetime value, and the results of any such investments; (ii) having the financial flexibility to invest in our future growth and return excess cash to shareholders; (iii) maximizing long-term value creation; and (iv) our full year 2025 outlook and our first quarter 2025 outlook. 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

Year Ended

 

December 31,

December 31,

 

2024

2023

2024

2023

REVENUES:

 

 

 

 

Lease Revenues and Fees

$

592,872

 

$

557,484

 

$

2,366,489

 

$

2,333,588

 

Interest and Fees on Loans Receivable

 

30,448

 

 

19,917

 

 

97,007

 

 

74,676

 

 

 

623,320

 

 

577,401

 

 

2,463,496

 

 

2,408,264

 

COSTS AND EXPENSES:

 

 

 

 

Depreciation of Lease Merchandise

 

403,661

 

 

374,146

 

 

1,621,101

 

 

1,576,303

 

Provision for Lease Merchandise Write-offs

 

46,678

 

 

38,955

 

 

178,338

 

 

155,250

 

Operating Expenses

 

122,810

 

 

128,932

 

 

469,160

 

 

451,084

 

 

 

573,149

 

 

542,033

 

 

2,268,599

 

 

2,182,637

 

OPERATING PROFIT

 

50,171

 

 

35,368

 

 

194,897

 

 

225,627

 

Interest Expense, Net

 

(8,316

)

 

(6,857

)

 

(31,289

)

 

(29,406

)

EARNINGS BEFORE INCOME TAX (BENEFIT) EXPENSE

 

41,855

 

 

28,511

 

 

163,608

 

 

196,221

 

INCOME TAX (BENEFIT) EXPENSE

 

(15,692

)

 

9,936

 

 

(33,641

)

 

57,383

 

NET EARNINGS

$

57,547

 

$

18,575

 

$

197,249

 

$

138,838

 

EARNINGS PER SHARE

 

 

 

 

Basic

$

1.39

 

$

0.42

 

$

4.63

 

$

3.02

 

Assuming Dilution

$

1.34

 

$

0.41

 

$

4.53

 

$

2.98

 

CASH DIVIDENDS DECLARED PER SHARE:

 

 

 

 

Common Stock

$

0.12

 

$

—

 

$

0.48

 

$

—

 

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

 

 

 

Basic

 

41,438

 

 

44,337

 

 

42,584

 

 

46,034

 

Assuming Dilution

 

42,796

 

 

45,075

 

 

43,549

 

 

46,550

 

 

PROG Holdings, Inc.

Consolidated Balance Sheets

(In thousands, except share data)

 

 

 

 

December 31, 2024

December 31, 2023

ASSETS:

 

 

Cash and Cash Equivalents

$

95,655

 

$

155,416

 

Accounts Receivable (net of allowances of $71,607 in 2024 and $64,180 in 2023)

 

80,225

 

 

67,879

 

Lease Merchandise (net of accumulated depreciation and allowances of $440,831 in 2024 and $423,466 in 2023)

 

680,242

 

 

633,427

 

Loans Receivable (net of allowances and unamortized fees of $57,342 in 2024 and $50,022 in 2023)

 

146,985

 

 

126,823

 

Property and Equipment, Net

 

21,443

 

 

24,104

 

Operating Lease Right-of-Use Assets

 

4,035

 

 

9,271

 

Goodwill

 

296,061

 

 

296,061

 

Other Intangibles, Net

 

73,775

 

 

91,664

 

Income Tax Receivable

 

10,644

 

 

32,918

 

Deferred Income Tax Assets

 

26,472

 

 

2,981

 

Prepaid Expenses and Other Assets

 

78,230

 

 

50,711

 

Total Assets

$

1,513,767

 

$

1,491,255

 

LIABILITIES & SHAREHOLDERS’ EQUITY:

 

 

Accounts Payable and Accrued Expenses

$

93,190

 

$

151,259

 

Deferred Income Tax Liabilities

 

74,320

 

 

104,838

 

Customer Deposits and Advance Payments

 

40,917

 

 

35,713

 

Operating Lease Liabilities

 

11,496

 

 

15,849

 

Debt, Net

 

643,563

 

 

592,265

 

Total Liabilities

 

863,486

 

 

899,924

 

SHAREHOLDERS' EQUITY:

 

 

Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at December 31, 2024 and December 31, 2023; Shares Issued: 82,078,654 at December 31, 2024 and December 31, 2023

 

41,039

 

 

41,039

 

Additional Paid-in Capital

 

358,538

 

 

352,421

 

Retained Earnings

 

1,469,450

 

 

1,293,073

 

 

 

1,869,027

 

 

1,686,533

 

Less: Treasury Shares at Cost

 

 

Common Stock: 41,262,901 Shares at December 31, 2024 and 38,404,527 at December 31, 2023

 

(1,218,746

)

 

(1,095,202

)

Total Shareholders’ Equity

 

650,281

 

 

591,331

 

Total Liabilities & Shareholders’ Equity

$

1,513,767

 

$

1,491,255

 

 

PROG Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

Year Ended December 31,

 

2024

2023

OPERATING ACTIVITIES:

 

 

Net Earnings

$

197,249

 

$

138,838

 

Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities:

 

 

Depreciation of Lease Merchandise

 

1,621,101

 

 

1,576,303

 

Other Depreciation and Amortization

 

26,977

 

 

32,032

 

Provisions for Accounts Receivable and Loan Losses

 

386,558

 

 

345,383

 

Stock-Based Compensation

 

29,179

 

 

24,920

 

Deferred Income Taxes

 

(56,030

)

 

(32,449

)

Impairment of Goodwill and Other Assets

 

6,018

 

 

—

 

Income Tax Benefit from Reversal of Uncertain Tax Position

 

(51,443

)

 

—

 

Non-Cash Lease Expense

 

(3,632

)

 

(2,669

)

Other Changes, Net

 

(2,640

)

 

(5,992

)

Changes in Operating Assets and Liabilities:

 

 

Additions to Lease Merchandise

 

(1,850,425

)

 

(1,721,117

)

Book Value of Lease Merchandise Sold or Disposed

 

182,509

 

 

159,430

 

Accounts Receivable

 

(342,954

)

 

(307,984

)

Prepaid Expenses and Other Assets

 

(25,394

)

 

(2,110

)

Income Tax Receivable and Payable

 

24,743

 

 

(14,188

)

Accounts Payable and Accrued Expenses

 

(8,495

)

 

15,200

 

Customer Deposits and Advance Payments

 

5,204

 

 

(1,361

)

Cash Provided by Operating Activities

 

138,525

 

 

204,236

 

INVESTING ACTIVITIES:

 

 

Investments in Loans Receivable

 

(459,463

)

 

(214,686

)

Proceeds from Loans Receivable

 

388,437

 

 

185,056

 

Outflows on Purchases of Property and Equipment

 

(8,316

)

 

(9,616

)

Proceeds from Sale of Property and Equipment

 

131

 

 

48

 

Other Proceeds

 

41

 

 

365

 

Cash Used in Investing Activities

 

(79,170

)

 

(38,833

)

FINANCING ACTIVITIES:

 

 

Borrowings on Revolving Facility

 

50,000

 

 

—

 

Acquisition of Treasury Stock

 

(138,651

)

 

(139,573

)

Dividends Paid

 

(20,393

)

 

—

 

Issuance of Stock Under Stock Option and Employee Purchase Plans

 

2,364

 

 

1,357

 

Cash Paid for Shares Withheld for Employee Taxes

 

(9,660

)

 

(3,622

)

Debt Issuance Costs

 

(2,776

)

 

(29

)

Cash Used in Financing Activities

 

(119,116

)

 

(141,867

)

(Decrease) Increase in Cash and Cash Equivalents

 

(59,761

)

 

23,536

 

Cash and Cash Equivalents at Beginning of Period

 

155,416

 

 

131,880

 

Cash and Cash Equivalents at End of Period

$

95,655

 

$

155,416

 

Net Cash Paid During the Period:

 

 

Interest

$

37,033

 

$

36,991

 

Income Taxes

$

49,840

 

$

100,433

 

 

PROG Holdings, Inc.

Quarterly Revenues by Segment

(In thousands)

 

 

(Unaudited)

 

Three Months Ended

 

December 31, 2024

 

Progressive Leasing

Vive

Other

Consolidated Total

Lease Revenues and Fees

$

592,872

$

—

$

—

$

592,872

Interest and Fees on Loans Receivable

 

—

 

16,943

 

13,505

 

30,448

Total Revenues

$

592,872

$

16,943

$

13,505

$

623,320

 

 

(Unaudited)

 

Three Months Ended

 

December 31, 2023

 

Progressive Leasing

Vive

Other

Consolidated Total

Lease Revenues and Fees

$

557,484

$

—

$

—

$

557,484

Interest and Fees on Loans Receivable

 

—

 

17,025

 

2,892

 

19,917

Total Revenues

$

557,484

$

17,025

$

2,892

$

577,401

 

PROG Holdings, Inc.

Annual Revenues by Segment

(In thousands)

 

 

 

Twelve Months Ended

 

December 31, 2024

 

Progressive Leasing

Vive

Other

Consolidated Total

Lease Revenues and Fees

$

2,366,489

$

—

$

—

$

2,366,489

Interest and Fees on Loans Receivable

 

—

 

64,415

 

32,592

 

97,007

Total Revenues

$

2,366,489

$

64,415

$

32,592

$

2,463,496

 

 

Twelve Months Ended

 

December 31, 2023

 

Progressive Leasing

Vive

Other

Consolidated Total

Lease Revenues and Fees

$

2,333,588

$

—

$

—

$

2,333,588

Interest and Fees on Loans Receivable

 

—

 

68,912

 

5,764

 

74,676

Total Revenues

$

2,333,588

$

68,912

$

5,764

$

2,408,264

 

PROG Holdings, Inc.

Gross Merchandise Volume by Quarter

(In thousands)

 

 

(Unaudited)

 

Three Months Ended December 31,

 

2024

2023

Progressive Leasing

$

597,493

$

547,575

Vive

 

34,979

 

31,918

Other

 

134,580

 

53,260

Total GMV

$

767,052

$

632,753

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 first quarter 2025 outlook excludes intangible amortization expense. Non-GAAP net earnings and non-GAAP diluted earnings per share for the year ended December 31, 2024 exclude intangible amortization expense, restructuring expenses, costs related to the cybersecurity incident, net of insurance recoveries, reversal of the uncertain tax position related to Progressive Leasing's $175 million settlement with the FTC in 2020, and the tax benefit associated with the deemed liquidation of a partnership for tax purposes. Non-GAAP net earnings and non-GAAP diluted earnings per share for the year ended December 31, 2023 exclude intangible amortization expense, restructuring expenses, costs related to the cybersecurity incident, regulatory insurance recoveries, 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 earnings per share assuming dilution to non-GAAP net earnings and earnings per share assuming dilution 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 first quarter 2025 outlook excludes stock-based compensation expense. Adjusted EBITDA for the three months and year ended December 31, 2024 excludes stock-based compensation expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. Adjusted EBITDA for the three months and year ended December 31, 2023 excludes stock-based compensation expense, restructuring expenses, costs related to the cybersecurity incident and regulatory insurance recoveries. 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 Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings and Earnings Per Share Assuming Dilution

(In thousands, except per share amounts)

 

 

(Unaudited)

 

 

Three Months Ended

Twelve Months

Ended

 

Mar 31,

Jun 30,

Sept 30,

Dec 31,

Dec 31,

 

2024

Net Earnings

$

21,966

 

$

33,774

 

$

83,962

 

$

57,547

 

$

197,249

 

Add: Intangible Amortization Expense

 

5,650

 

 

4,239

 

 

4,000

 

 

4,000

 

 

17,889

 

Add: Restructuring Expense

 

18,014

 

 

2,886

 

 

6

 

 

1,785

 

 

22,691

 

Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

 

116

 

 

116

 

 

114

 

 

(61

)

 

285

 

Less: Tax Impact of Adjustments(1)

 

(6,183

)

 

(1,883

)

 

(1,071

)

 

(1,488

)

 

(10,625

)

Less: Reversal of Uncertain Tax Position

 

—

 

 

—

 

 

(53,599

)

 

—

 

 

(53,599

)

Less: Tax Benefit from Partnership Deemed Liquidation

 

—

 

 

—

 

 

—

 

 

(27,635

)

 

(27,635

)

Add: Accrued Interest on Uncertain Tax Position

 

1,078

 

 

1,078

 

 

—

 

 

—

 

 

2,156

 

Non-GAAP Net Earnings

$

40,641

 

$

40,210

 

$

33,412

 

$

34,148

 

$

148,411

 

Earnings Per Share Assuming Dilution

$

0.49

 

$

0.77

 

$

1.94

 

$

1.34

 

$

4.53

 

Add: Intangible Amortization Expense

 

0.13

 

 

0.10

 

 

0.09

 

 

0.09

 

 

0.41

 

Add: Restructuring Expense

 

0.40

 

 

0.07

 

 

—

 

 

0.04

 

 

0.52

 

Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

 

—

 

 

—

 

 

—

 

 

—

 

 

0.01

 

Less: Tax Impact of Adjustments(1)

 

(0.14

)

 

(0.04

)

 

(0.02

)

 

(0.03

)

 

(0.24

)

Less: Reversal of Uncertain Tax Position

 

—

 

 

—

 

 

(1.24

)

 

—

 

 

(1.23

)

Less: Tax Benefit from Partnership Deemed Liquidation

 

—

 

 

—

 

 

—

 

 

(0.65

)

 

(0.63

)

Add: Accrued Interest on Uncertain Tax Position

 

0.02

 

 

0.02

 

 

—

 

 

—

 

 

0.05

 

Non-GAAP Earnings Per Share Assuming Dilution(2)

$

0.91

 

$

0.92

 

$

0.77

 

$

0.80

 

$

3.41

 

Weighted Average Shares Outstanding Assuming Dilution

 

44,528

 

 

43,721

 

 

43,169

 

 

42,796

 

 

43,549

 

 

(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 Net Earnings and Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings and Earnings Per Share Assuming Dilution

(In thousands, except per share amounts)

 

 

(Unaudited)

 

 

Three Months Ended

Twelve Months

Ended

 

Mar 31,

Jun 30,

Sept 30,

Dec 31,

Dec 31,

 

2023

Net Earnings

$

48,033

 

$

37,218

 

$

35,012

 

$

18,575

 

$

138,838

 

Add: Intangible Amortization Expense

 

5,724

 

 

5,723

 

 

5,650

 

 

5,651

 

 

22,748

 

Add: Restructuring Expense

 

757

 

 

963

 

 

238

 

 

10,575

 

 

12,533

 

Add: Costs Related to the Cybersecurity Incident

 

—

 

 

—

 

 

1,805

 

 

1,028

 

 

2,833

 

Less: Regulatory Insurance Recoveries

 

(525

)

 

—

 

 

—

 

 

—

 

 

(525

)

Less: Tax Impact of Adjustments(1)

 

(1,549

)

 

(1,738

)

 

(2,000

)

 

(4,486

)

 

(9,773

)

Add: Accrued Interest on FTC Settlement Uncertain Tax Position

 

970

 

 

970

 

 

971

 

 

1,078

 

 

3,989

 

Non-GAAP Net Earnings

$

53,410

 

$

43,136

 

$

41,676

 

$

32,421

 

$

170,643

 

Earnings Per Share Assuming Dilution

$

1.00

 

$

0.79

 

$

0.76

 

$

0.41

 

$

2.98

 

Add: Intangible Amortization Expense

 

0.12

 

 

0.12

 

 

0.12

 

 

0.13

 

 

0.49

 

Add: Restructuring Expense

 

0.02

 

 

0.02

 

 

0.01

 

 

0.23

 

 

0.27

 

Add: Costs Related to the Cybersecurity Incident

 

—

 

 

—

 

 

0.04

 

 

0.02

 

 

0.06

 

Less: Regulatory Insurance Recoveries

 

(0.01

)

 

—

 

 

—

 

 

—

 

 

(0.01

)

Less: Tax Impact of Adjustments(1)

 

(0.03

)

 

(0.04

)

 

(0.04

)

 

(0.10

)

 

(0.21

)

Add: Accrued Interest on FTC Settlement Uncertain Tax Position

 

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.09

 

Non-GAAP Earnings Per Share Assuming Dilution(2)

$

1.11

 

$

0.92

 

$

0.90

 

$

0.72

 

$

3.67

 

Weighted Average Shares Outstanding Assuming Dilution

 

48,139

 

 

46,896

 

 

46,133

 

 

45,075

 

 

46,550

 

 

(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

 

December 31, 2024

 

Progressive Leasing

Vive

Other

Consolidated Total

Net Earnings

 

 

 

$

57,547

 

Income Tax Benefit(1)

 

 

 

 

(15,692

)

Earnings (Loss) Before Income Tax Benefit

$

48,186

 

$

(956

)

$

(5,375

)

 

41,855

 

Interest Expense, Net

 

6,731

 

 

—

 

 

1,585

 

 

8,316

 

Depreciation

 

1,494

 

 

156

 

 

547

 

 

2,197

 

Amortization

 

3,771

 

 

—

 

 

229

 

 

4,000

 

EBITDA

 

60,182

 

 

(800

)

 

(3,014

)

 

56,368

 

Stock-Based Compensation

 

5,760

 

 

282

 

 

1,549

 

 

7,591

 

Restructuring Expense

 

(68

)

 

1,853

 

 

—

 

 

1,785

 

Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

 

(61

)

 

—

 

 

—

 

 

(61

)

Adjusted EBITDA

$

65,813

 

$

1,335

 

$

(1,465

)

$

65,683

 

 

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

 

 

(Unaudited)

 

Three Months Ended

 

December 31, 2023

 

Progressive Leasing

Vive

Other

Consolidated Total

Net Earnings

 

 

 

$

18,575

Income Tax Expense(1)

 

 

 

 

9,936

Earnings (Loss) Before Income Tax Expense

$

35,857

$

59

$

(7,405

)

 

28,511

Interest Expense, Net

 

6,915

 

24

 

(82

)

 

6,857

Depreciation

 

1,941

 

211

 

353

 

 

2,505

Amortization

 

5,422

 

—

 

229

 

 

5,651

EBITDA

 

50,135

 

294

 

(6,905

)

 

43,524

Stock-Based Compensation

 

4,024

 

306

 

1,509

 

 

5,839

Restructuring Expense

 

10,575

 

—

 

—

 

 

10,575

Costs Related to the Cybersecurity Incident

 

1,028

 

—

 

—

 

 

1,028

Adjusted EBITDA

$

65,762

$

600

$

(5,396

)

$

60,966

 

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

 

PROG Holdings, Inc.

Non-GAAP Financial Information

Twelve Month Segment EBITDA

(In thousands)

 

 

 

Twelve Months Ended

 

December 31, 2024

 

Progressive Leasing

Vive

Other

Consolidated Total

Net Earnings

 

 

 

$

197,249

 

Income Tax Benefit(1)

 

 

 

 

(33,641

)

Earnings (Loss) Before Income Tax Benefit

$

184,782

$

(848

)

$

(20,326

)

 

163,608

 

Interest Expense, Net

 

30,653

 

—

 

 

636

 

 

31,289

 

Depreciation

 

6,574

 

643

 

 

1,871

 

 

9,088

 

Amortization

 

16,972

 

—

 

 

917

 

 

17,889

 

EBITDA

 

238,981

 

(205

)

 

(16,902

)

 

221,874

 

Stock-Based Compensation

 

22,665

 

1,334

 

 

5,180

 

 

29,179

 

Restructuring Expense

 

18,210

 

1,853

 

 

2,628

 

 

22,691

 

Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

 

285

 

—

 

 

—

 

 

285

 

Adjusted EBITDA

$

280,141

$

2,982

 

$

(9,094

)

$

274,029

 

 

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

 

 

Twelve Months Ended

 

December 31, 2023

 

Progressive Leasing

Vive

Other

Consolidated Total

Net Earnings

 

 

 

$

138,838

 

Income Tax Expense(1)

 

 

 

 

57,383

 

Earnings (Loss) Before Income Tax Expense

$

216,271

 

$

4,545

$

(24,595

)

 

196,221

 

Interest Expense, Net

 

28,978

 

 

593

 

(165

)

 

29,406

 

Depreciation

 

7,482

 

 

745

 

1,058

 

 

9,285

 

Amortization

 

21,684

 

 

—

 

1,064

 

 

22,748

 

EBITDA

 

274,415

 

 

5,883

 

(22,638

)

 

257,660

 

Stock-Based Compensation

 

17,327

 

 

1,190

 

6,403

 

 

24,920

 

Restructuring Expense

 

12,533

 

 

—

 

—

 

 

12,533

 

Regulatory Insurance Recoveries

 

(525

)

 

—

 

—

 

 

(525

)

Costs Related to the Cybersecurity Incident

 

2,833

 

 

—

 

—

 

 

2,833

 

Adjusted EBITDA

$

306,583

 

$

7,073

$

(16,235

)

$

297,421

 

 

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

 

PROG Holdings, Inc.

Non-GAAP Financial Information

Reconciliation of 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 March 31, 2025 Outlook for Adjusted EBITDA

(In thousands)

 

 

Three Months Ended

March 31, 2025

 

Consolidated Total

Estimated Net Earnings

$28,000 - $32,000

Income Tax Expense(1)

12,000 - 13,000

Projected Earnings Before Income Tax Expense

40,000 - 45,000

Interest Expense, Net

9,000

Depreciation

2,000

Amortization

4,000

Projected EBITDA

55,000 - 60,000

Stock-Based Compensation

8,000

Projected Adjusted EBITDA

$63,000 - $68,000

 

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

 

PROG Holdings, Inc.

Reconciliation of Full Year 2025 Outlook for Earnings Per Share

Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution

 

 

Full Year 2025

 

Low

High

Projected Earnings Per Share Assuming Dilution

$

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 Earnings Per Share Assuming Dilution(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 March 31, 2025 Outlook for Earnings Per Share

Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution

 

 

Three Months Ended

March 31, 2025

 

Low

High

Projected Earnings Per Share Assuming Dilution

$

0.73

 

$

0.78

 

Add: Projected Intangible Amortization Expense

 

0.09

 

 

0.09

 

Subtract: Tax Effect on Non-GAAP Adjustments(1)

 

(0.02

)

 

(0.02

)

Projected Non-GAAP Earnings Per Share Assuming Dilution(2)

$

0.80

 

$

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/20250219712484/en/

Investor Contact John A. Baugh, CFA Vice President, Investor Relations john.baugh@progleasing.com