Wed, Apr 23, 1:27 PM (23 days ago)
**PROG Holdings, Inc. (PRG) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $684.1 million, up 6.6% YoY, driven by a larger lease portfolio and increased early buyouts. - **Net Earnings:** $34.7 million, up 58.1% YoY, due to higher revenues and lower restructuring costs. - **Operating Profit:** $56.3 million, up 41.4% YoY, reflecting improved operational efficiency. - **Earnings Before Tax:** $47.2 million, up 49.6% YoY, indicating strong pre-tax profitability. - **Cash Flow from Operations:** $209.9 million, up 54.7% YoY, showing robust cash generation. **Profit Margins:** - **Operating Margin:** 8.2%, improved from 6.2% in Q1 2024. - **Net Margin:** 5.1%, up from 3.4% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $209.9 million, up from $135.7 million in Q1 2024. - **Investing Cash Flow:** -$4.1 million, slightly higher outflows due to increased loan investments. - **Financing Cash Flow:** -$88.2 million, primarily due to debt repayment and share repurchases. **Earnings Changes:** - **Earnings Per Share (EPS):** $0.85, up from $0.50 in Q1 2024. - **Dividends:** $0.13 per share, a slight increase from $0.12 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by Progressive Leasing's larger lease portfolio and increased early buyouts. - **Cost Management:** Effective cost control led to improved margins. - **Cash Flow:** Strong operational cash flow supports investment and shareholder returns. **Trends and Uncertainties:** - **Macroeconomic Challenges:** Inflation, elevated interest rates, and tariffs impact consumer confidence and demand. - **Operational Risks:** Higher delinquencies and write-offs in Progressive Leasing's portfolio. - **Future Operations:** Continued focus on growth, cost management, and strategic investments. **Future Operations Impact:** - **Growth Initiatives:** Expansion of loan origination programs and strategic investments. - **Cost Management:** Ongoing efforts to control costs and improve operational efficiency. - **Shareholder Returns:** Continued share repurchases and dividends, subject to board discretion. **Key Metrics:** - **Gross Merchandise Volume (GMV):** Progressive Leasing down 4.0% YoY, Vive up 14.8% YoY, Other up 145.7% YoY. - **Active Customer Count:** Progressive Leasing and Vive relatively flat, Other up significantly due to Four's growth. **Segment Performance:** - **Progressive Leasing:** Larger lease portfolio and higher early buyouts drove revenue growth. - **Vive:** Slight decline in revenues due to a smaller loan portfolio. - **Other:** Significant growth in Four's loan originations drove revenue increase. **Financial Position:** - **Cash and Cash Equivalents:** $213.3 million, up from $95.7 million in Q4 2024. - **Debt:** $593.9 million, down from $643.6 million in Q4 2024 due to debt repayment. - **Liquidity:** $350.0 million available under the Revolving Facility. **Legal and Regulatory:** - **Ongoing Proceedings:** No material adverse impact expected from current legal proceedings. - **Compliance:** In compliance with all debt covenants and regulatory requirements. **Share Repurchases and Dividends:** - **Share Repurchases:** $26.1 million in Q1 2025, $335.2 million remaining under authorization. - **Dividends:** $5.3 million paid in Q1 2025, with future payments subject to board discretion. **Conclusion:** PROG Holdings, Inc. (PRG) demonstrated strong financial performance in Q1 2025, with significant revenue and earnings growth. The company continues to navigate macroeconomic challenges while focusing on operational efficiency and strategic investments. The robust cash flow and strong liquidity position support future growth and shareholder returns.