PROG Holdings Reports Fourth Quarter 2024 Results

PROG Holdings, Inc., a fintech holding company headquartered in Salt Lake City, UT, has released its financial results for the fourth quarter of 2024. The company, which operates Progressive Leasing, Vive Financial, Four Technologies, and Build, reported strong performance metrics and provided insights into its strategic direction for 2025.

Financial Highlights

For the fourth quarter of 2024, PROG Holdings reported consolidated revenues of $623.3 million, marking an 8.0% increase from the same period in 2023. Net earnings for the quarter were $57.5 million, a significant rise from $18.6 million in the prior year period. The effective income tax rate was notably negative at (37.5)% due to a deferred tax benefit.

Adjusted EBITDA for the quarter was $65.7 million, or 10.5% of revenues, compared to $61.0 million, or 10.6% of revenues, in the same period in 2023. Diluted earnings per share (EPS) were $1.34, up from $0.41 in the year-ago period, while non-GAAP diluted EPS stood at $0.80, compared to $0.72 in the fourth quarter of 2023.

Business and Operational Highlights

Progressive Leasing, a key segment of PROG Holdings, reported a gross merchandise volume (GMV) of $597.5 million for the fourth quarter, reflecting a 9.1% growth year-over-year. The provision for lease merchandise write-offs for the quarter was 7.9%, with a full-year provision of 7.5%, within the targeted annual range of 6-8%.

The company ended the quarter with $95.7 million in cash and gross debt of $650.0 million. During the quarter, PROG Holdings repurchased $40.5 million of its stock at an average price of $47.03 per share and paid a cash dividend of $0.12 per share.

Strategic Initiatives and Corporate Developments

PROG Holdings continues to focus on its three-pillared strategy to grow, enhance, and expand its business. The company aims to increase customer acquisition and lifetime value through disciplined portfolio management and cost efficiencies. The cash-efficient model provides financial flexibility for future growth investments and returning excess cash to shareholders.

Management's Perspective

Steve Michaels, President and CEO of PROG Holdings, commented on the company's performance, stating, "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." He emphasized the successful year driven by better-than-expected GMV growth, disciplined portfolio management, cost efficiencies, and strategic execution.

Michaels added, "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."

Future Outlook

For 2025, PROG Holdings has issued a full-year outlook with total revenues expected to range between $2.515 billion and $2.590 billion. Net earnings are projected to be between $115.5 million and $133.5 million, with adjusted EBITDA expected to range from $260 million to $280 million. The company also provided guidance for the first quarter of 2025, with total revenues anticipated to be between $665 million and $685 million, and net earnings between $28 million and $32 million.

SEC Filing: PROG Holdings, Inc. [ PRG ] - 8-K - Feb. 19, 2025