PROG Holdings Q2 2025 Earnings Conference Call Highlights

PROG Holdings reported Q2 2025 earnings, with CEO Steve Michaels and CFO Brian Garner participating in the conference call. The company's investor relations website has the earnings release, and forward-looking statements were made regarding the revised 2025 full year outlook and Q3 guidance. The health of the lease portfolio and capital allocation priorities were also discussed.

PROG Holdings, Inc. (NYSE:PRG), a fintech holding company, reported its second-quarter 2025 financial results on July 23, 2025. The company's CEO, Steve Michaels, and CFO, Brian Garner, participated in a conference call to discuss the results and provide updates on the 2025 full-year outlook and third-quarter guidance. The earnings release is available on the company's investor relations website [1].

Second-Quarter Performance

Consolidated revenues for the second quarter of 2025 were $604.7 million, an increase of 2.1% from the same period in 2024. Consolidated net earnings for the quarter were $38.5 million, compared with $33.8 million in the prior year period. The effective income tax rate was 26.8% in the second quarter. Adjusted EBITDA for the quarter was $73.5 million, or 12.2% of revenues, compared with $72.3 million, or 12.2% of revenues for the same period in 2024. Diluted earnings per share for the second quarter of 2025 were $0.95, compared with $0.77 in the year ago period. On a non-GAAP basis, diluted earnings per share were up 10.9% at $1.02 in the second quarter of 2025, compared with $0.92 for the same period in 2024.

Progressive Leasing's second quarter GMV of $413.9 million was down 8.9% compared to the same period in 2024. The provision for lease merchandise write-offs for the quarter was 7.5% of leasing revenues, within the Company's 6-8% targeted annual range.

Capital Allocation and Liquidity

PROG Holdings ended the second quarter of 2025 with cash of $222.0 million and gross debt of $600.0 million. The Company repurchased $25.7 million of its stock in the quarter at an average price of $28.51 per share, leaving $309.6 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

The Company is providing selective third-quarter outlook metrics and updating its full-year 2025 outlook. The updated outlook 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 27%, and no impact from additional share repurchases. The revised 2025 outlook is as follows:

- Total Revenues: $2,450,000 to $2,500,000
- Net Earnings: $120,000 to $125,000
- Adjusted EBITDA: $255,000 to $265,000
- Diluted EPS: $2.91 to $3.06
- Diluted Non-GAAP EPS: $3.20 to $3.35

The conference call and webcast are scheduled for Wednesday, July 23, 2025, at 8:30 A.M. ET [1].

References

[1] https://www.businesswire.com/news/home/20250723530940/en/PROG-Holdings-Reports-Second-Quarter-2025-Results