PROG : Announces Acquisition of Purchasing Power

About this update from Prog Holdings, Inc.

PROG Holdings, Inc. Announces Acquisition of Purchasing Power December 2, 2025 PROG Holdings' Mission Mission To create a better today and unlock the possibilities of tomorrow through financial empowerment PROG Internal 3 Accelerates our Mission by Expanding Financial Access Through a New, Scalable Customer Acquisition Channel PROG Holdings has agreed to acquire Purchasing Power for $420M in cash; transaction expected to contribute between $50M and $60M of Adjusted EBiTDA (1) in 2026 Grow our GMV through existing merchant partners, new partners, and direct-to-consumer initiatives Grow Enhance Enhance our industry-leading consumer experience Expand our ecosystem to increase access and deliver more value to our customers Expand PROG Internal (1) See Appendix for non-GAAP definitions. 4 Purchasing Power at a Glance Purchasing Power is an e-commerce based platform whereby customers purchase goods and services and pay for those items in installments via direct payroll deduction or payroll allotment Moated B2B2C model where Purchasing Power is offered as a voluntary benefit to employees (customers) of the employer (client) Go-to-market strategy powered by strong network of nationwide benefit brokers / partners and supplemented by growing direct sales force Provides access to over 7 million employees nationwide through its client relationships with over 360 established employers as well as public sector-related employers Sticky client relationships combined with consistent repeat buyer behavior provides predictability and visibility Increasing trend of employer offered voluntary benefits and focus on employee financial wellness to foster employee engagement and retention $680M - $730M 2026E revenue 360+ Established employer clients from diversified industries 96% of employees find Purchasing Power valuable (2) ~90% of Purchasing Power's outstanding balance has payment terms of 12 months or less ~98% Client revenue retention (1) 100+ Relationships with distribution partners PROG Internal For a given year, represents the % of revenue from clients who joined the platform prior to the current year. Based on Purchasing Power surveys. 5 Purchasing Power Operating Model 1 2 3 4 Purchasing Power onboards a client (employer) Client (employer) offers Purchasing Power's service to its employees as a voluntary benefit Employee registers with Purchasing Power and browses its site with over 70K unique SKUs Employee makes a purchase 5 6 7 8 Payments are deducted Employer (or TPA (1) ) Purchasing Power places an order with a vendor Vendor ships the product directly to the employee from the employee's paycheck in installments sends the payroll deduction (2) amounts to Purchasing Power PROG Internal Third party administrator. Some employee payments from public sector-related employers are made via payroll allotment. 6 100+ Distribution Partners Access to Customer Base at Scale Successfully partners with some of America's largest employers across more than 25 industries nationwide - including 48 Fortune 500 companies and 7 of the top 30 U.S. employers 360+ Established Clients Public Sector-Related Employers ~7mm+ Eligible Employees Today Brokers Partners (1) Internal Sales Force A Limited Number of Purchasing Power Sales Resources… …through its network of Benefit Brokers, Partners, and Direct Sales …Can Reach Hundreds of Clients… …and Millions of Potential Customers… Channel… PROG Internal (1) Includes technology platforms, HR tech providers, and affinity partners. 7 Compelling Value Proposition to Clients and Customers Benefit for Clients 360+ established employers , focusing on companies in industries with stable employee populations / low turnover and public sector-related employers Client Base Target employers with over 1K employees; average client has ~15K employees Diverse industry representation Sticky, embedded relationships; 98% client revenue retention rate (1) Eases financial stress and improves productivity Increases employee loyalty / retention Improves employee morale and job satisfaction Results in a free benefit at no cost to the employer Customer Base ~7mm+ eligible employees ~54% female / ~46% male; ~48 average age (2) ~80% of customers have <650 Credit Score Benefit for Customers Spending power known upfront Transparent, affordable payments Vast selection of brand name products and services Convenient payment method Median household income of ~$78K (2) Reduces financial stress 8 (1) For a given year, represents the % of revenue from clients who joined the platform prior to the current year. PROG Internal (2) Metrics are based on 1Q25 Experian Data. Breadth and Depth of Product Categories Broad selection of dynamically priced SKUs across multiple categories with access to major brands and products supported by Purchasing Power's robust supplier network Jewelry / Fashion / Beauty Furniture / Décor Outdoor / Fitness Electronics TV / Appliances Travel / Services 9 Acquisition Strengthens Current Ecosystem Leading in-store, app-based, and e-commerce point-of-sale lease-to-own solutions provider Direct to Consumer Buy Now, Pay Later (BNPL) payment platform Grants customers short-term cash advances Integrated Ecosystem Creates one of the most diversified payment solutions providers to the near and sub-prime market, intended to build a platform for sustained multi-year growth Provides access to a highly complementary employee-focused customer base with whom there is minimal overlap, enabling substantial expansion of current and new offerings Unique, voluntary employee benefit program provider allowing employees to purchase brand-name products through automatic payroll deductions Innovative credit building financial management tool that aims to help improve customers' financial health PROG Internal 10 Attention : This is an excerpt of the original content. 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