Q1 2025 PROG Holdings Inc Earnings Call Transcript
Key Points
- Revenue for the first quarter approximated the high end of the company's outlook, with both earnings and non-GAAP diluted EPS exceeding expectations.
- The BNPL platform, Four Technologies, showed strong growth and achieved its first quarter of positive adjusted EBITDA.
- Consolidated revenue increased by 6.6% year over year, driven by a larger lease portfolio and higher 90-day purchase activity.
- The lease portfolio remains healthy, with Q1 write-offs at 7.4%, slightly better than expected.
- The company continues to grow its balance of share with key existing partners and has expanded its active door count by nearly 5% year over year.
- Progressive leasing's GMV for the quarter was 4% below the same period last year, impacted by the loss of a large retail partner due to bankruptcy.
- There was a noticeable slowdown in consumer activity mid-quarter, attributed to economic volatility and evolving trade policy.
- Consumer confidence appears to be negatively impacted, with many shoppers delaying discretionary spending, especially in big-ticket categories.
- The macro environment has deteriorated, with inflation, tariff concerns, and broader uncertainty creating additional pressure on consumer and retail partner channels.
- Approval rates for leases were down year over year, partly due to tightening actions and a shift in application quality.
Good day and thank you for standing by. Welcome to the PROG Holdings first quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, John Baugh, Vice President of Investor Relations. Please go ahead.
Thank you and good morning, everyone. Welcome to the PROG Holdings first quarter 2025 earnings call. Joining me this morning are Steve Michaels, PROG Holdings President and Chief Executive Officer, and Brian Garner, our Chief Financial Officer.
Many of you have already seen a copy of our earnings release issued this morning, which is available on our Investor Relations website investor.progholdings.com. During this call, certain statements we make will be forward-looking, including comments regarding our revised 2025 full year outlook and our guidance for the second quarter of 2025. The health of our
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