Prog Holdings, Inc. · NYSE:PRG
Prog — Investor Presentation (2025)
32 slides from Prog's investor presentation, 2025
Slide 1: Prog Holdings, Inc. Investor Presentation 2025
Prog Holdings, Inc. Investor Presentation 2025 PROG Internal
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation 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-
Slide 3: Who we are / What we do
Who we are What we do. PROG Holdings, Inc. (NYSE:PRG) is a financial technology holding company headquartered in Salt Lake City, UT, ▪ We partner with tens of thousands of national, regional, and that provides transparent, flexible, and inclusive payment local retailers to offer innovative, transpar
Slide 4: Key Investment Highlights
Key Investment Highlights Profitable, asset-light, self-funding business model with consistent free cash flow generation Large addressable market, broadly underserved Proprietary AI/ML-based decisioning optimizes approval rates while delivering consistent portfolio performance Scalable technology pl
Slide 5: PROG Holdings at a Glance
PROG Holdings at a Glance FY 2024 Results Cash Flow Historical LTO Adjusted Revenue Non-GAAP from annual write- EBITDA EPS Operations off range1 $2.463 B $274.0 M $3.41 $138.5 M 6-8% Source: Company SEC filings 1Provision for lease merchandise write-offs as a % of revenue PROG Internal 5
Slide 6: Serving the underserved
Serving the underserved U.S. FICO Score Distribution Addressable market approximates 22.3% 20.7% 40% of U.S. population 16.2% 12.5% 9.3% 40% 7.8% 6.8% 4.3% 300-499 500-549 550-599 600-649 650-699 700-749 750-799 800-850 6 Sources: FICO.com and Progressive Leasing, PROG Internal
Slide 7: Three-Pillared Strategy
Three-Pillared Strategy Grow our GMV through existing merchant partners, new partners, and direct-to- Grow Enhance consumer initiatives Enhance our industry-leading consumer experience Expand our ecosystem to increase access and deliver Expand more value to our customers 7 PROG Internal
Slide 8: Capital Allocation Priorities And Expectations
Capital Allocation Priorities And Expectations Fuel Growth Explore Strategic Return Excess Capital M&A Opportunities to Shareholders ▪ Capital-light and efficient ▪ Explore adjacent products in ▪ Return excess cash to business model allows for support of core LTO business shareholders self-funding ▪
Slide 9: Progressive Leasing at a Glance
Progressive Leasing at a Glance Major Retailer Partners 2024 Revenues Attributed to Categories of Merchandise Furniture/Appliances/ Electronics Mobile Phones & Accessories 58% Jewelry “[Progressive Leasing] has “Progressive Leasing been bringing new drives sales and it’s all 16% Mattresses customers
Slide 10: Estimated Total Addressable Market
Estimated Total Addressable Market Progressive Leasing $2.4B Current VLTO Market Size $7B – $8B VLTO TAM Near-term Opportunity $22-$31 Billion untapped potential $30-40 Billion New customers - New retailers Mid-term & Long-term Opportunity New products to address underserved customer and retailer ne
Slide 11: Progressive Leasing's Core Customer
Progressive Leasing’s Core Customer Generational Breakdown Key Highlights Millenial 56% $4,000 Median monthly income Gen X 26% Average age of 39 years old Gen Z 9% Boomer 8% 51% female; 49% male Silent 1% 0% 10% 20% 30% 40% 50% 60% 76% renters 24% homeowners Source: Company customer data 11 PROG Int
Slide 12: The Progressive Leasing Customer Experience
The 1 2 3 Progressive Apply Instant Decision Approved Leasing Available online, through Decisions are issued Customers shop for Customer Experience Progressive’s mobile app, within seconds of leasable items of their and in-store with select application submission choice - approvals good leading reta
Slide 13: Progressive Leasing's Decisioning Process
Customer history Progressive Leasing’s Application Credit reports Decisioning Process Known fraud attributes Retailer/vertical performance Our large data set and proprietary decisioning Machine learning (ML) tool are expected to provide a competitive fraud filters advantage Largest virtual LTO provi
Slide 14: Links to Additional Information
Links to Additional Information Materials Additional Homepage News Management Events and Additional Presentations Materials 14 PROG Internal
Slide 15: PROG Holdings Board of Directors
PROG Holdings Board of Directors Ray Robinson Steven A. Michaels Daniela Mielke Douglas Curling Cynthia Day Chairman of the Board President and Chief Managing Partner, Managing Principal, New Kent President and Chief Executive Former President of the Executive Officer, Commerce Technology Capital LL
Slide 16: PROG Holdings Executive Management
PROG Holdings Executive Management Steven A. Michaels Curtis Doman Brian Garner Paul Hamilos Todd King President and Chief Co-Founder and Special Chief Financial Officer President, PRG Ventures Chief Legal and Executive Officer Advisor to the CEO Compliance Officer Debra Fiori Sridhar Nallani Nate R
Slide 17: Financials
Financials PROG Internal
Slide 18: Financials
Financials Revenue1 (Millions) Adj. EBITDA1 (Millions) $3,000 $400 $389 $2,678 $2,598 $2,463 $341 $2,485 $2,408 $350 $2,500 $297 $300 $274 $256 $2,000 $250 $1,500 $200 $150 $1,000 $100 $500 $50 $ $ 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Margins 12.0% 13.7% 14.5% 9.9% 11.1% Source: PROG Ho
Slide 19: Financials
Financials Gross Merchandise Volume1 (Millions) Lease Portfolio Turnover2 1.9X 1.77X 1.74X $2,500 1.7X 1.65X $2,144 1.59X $1,977 1.6X $2,000 $1,851 $1,927 $1,798 $1,500 1.3X $1,000 1.X $500 $ .7X 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Source: PROG Holdings, Inc. SEC filings 1 Includes the
Slide 20: PROG Holdings Full-Year 2025 Outlook
PROG Holdings Full-Year 2025 Outlook* 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 add
Slide 21: Links to Q1 2025 Results
Links to Q1 2025 Results Press Release Press Release Transcript Webcast Webcast Supplemental Form 10-K Form 10-K Presentation 21 PROG Internal
Slide 22: Appendix
Appendix PROG Internal
Slide 23: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures 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
Slide 24: Reconciliation of 2024 Non-GAAP Earnings Per Share Assuming Dilution
Reconciliation of 2024 Non-GAAP Earnings Per Share Assuming Dilution 24 (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 Internal
Slide 25: Reconciliation of 2024 Non-GAAP Adjusted EBITDA
Reconciliation of 2024 Non-GAAP Adjusted EBITDA (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segments. 25 PROG Internal
Slide 26: Reconciliation of 2023 Non-GAAP Adjusted EBITDA
Reconciliation of 2023 Non-GAAP Adjusted EBITDA (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segments. 26 PROG Internal
Slide 27: Reconciliation of 2022 Non-GAAP Adjusted EBITDA
Reconciliation of 2022 Non-GAAP Adjusted EBITDA (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segments. 27 PROG Internal
Slide 28: Reconciliation of 2021 Non-GAAP Adjusted EBITDA
Reconciliation of 2021 Non-GAAP Adjusted EBITDA (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segments. 28 PROG Internal
Slide 29: Reconciliation of 2020 Non-GAAP Adjusted EBITDA
Reconciliation of 2020 Non-GAAP Adjusted EBITDA (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segments. 29 PROG Internal
Slide 30: Reconciliation of Non-GAAP 2025 Outlook for Adjusted EBITDA
Reconciliation of Non-GAAP 2025 Outlook for Adjusted EBITDA (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segments. 30 PROG Internal
Slide 31: Reconciliation of Non-GAAP 2025 Outlook for Diluted Earnings Per Share
Reconciliation of Non-GAAP 2025 Outlook for Diluted Earnings Per Share (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 31 calculations due to rounding. PROG Internal
Slide 32: PROG Holdings, Inc.
PROG Holdings, Inc.