PROG Holdings Reports 6.6% Revenue Growth to $684.1 Million in Q1 2025

PROG Holdings, Inc. reported a revenue increase of 6.6% for the first quarter of 2025, reaching $684.1 million compared to $641.9 million in the same period last year. This growth was primarily driven by a larger lease portfolio entering the quarter, particularly in the Progressive Leasing segment, which generated $651.6 million in lease revenues and fees, up from $620.6 million in the prior year. The company also saw a significant rise in interest and fees on loans receivable, which surged by 52.6% to $32.5 million, reflecting increased loan originations in its Vive segment.

Despite the revenue growth, PROG Holdings faced challenges, including a decrease in gross merchandise volume (GMV) for its Progressive Leasing segment, which fell by $16.6 million due to the bankruptcy of a major point-of-sale partner and tightening credit conditions. The company reported a provision for lease merchandise write-offs that increased to 7.4% of lease revenues, up from 7.0% in the previous year, indicating elevated customer payment delinquencies. Overall, earnings before income tax expense rose to $47.2 million, a 49.6% increase from $31.6 million in the first quarter of 2024, largely due to lower restructuring costs and higher revenues.

In terms of operational metrics, the active customer count for Progressive Leasing remained stable at 828,000, while Vive's customer base grew slightly to 88,000. The company also reported a notable increase in GMV from its "Other" operations, which includes its Buy Now, Pay Later service, Four, which saw a 145.7% increase in GMV to $119.9 million. This growth reflects the company's strategic focus on expanding its product offerings and customer base.

On the balance sheet, PROG Holdings reported a cash and cash equivalents increase to $213.3 million, up from $95.7 million at the end of 2024. Total assets decreased to $1.47 billion, primarily due to a reduction in lease merchandise and accounts receivable. The company’s debt also decreased by $49.7 million, reflecting the repayment of a $50 million balance on its revolving credit facility. The company remains in compliance with its debt covenants and has $350 million available under its revolving credit facility.

Looking ahead, PROG Holdings anticipates continued growth in its lease and loan portfolios, although it remains cautious due to ongoing macroeconomic challenges, including inflation and consumer confidence issues. The company plans to focus on maintaining a healthy lease portfolio while exploring opportunities for strategic acquisitions and product expansions to enhance its market position.