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SALT LAKE CITY - On Wednesday, PROG Holdings , Inc. (NYSE:PRG), the fintech holding company reported, second-quarter earnings that significantly exceeded analyst expectations, demonstrating resilience in its leasing business despite challenging market conditions.
The company’s shares surged 11.85% in pre-market trading after the earnings release.
The company reported adjusted earnings of $1.02 per share for the second quarter, handily beating the analyst estimate of $0.80. Revenue came in at $604.7 million, up 2.1% YoY and above the consensus estimate of $589.09 million. The strong performance came despite the loss of an important retail partner to liquidation during the quarter.
"Our second quarter results once again demonstrate the resiliency of our Leasing business and our ability to manage through a period of high uncertainty," said Steve Michaels, President and CEO of PROG Holdings. "The revenue and earnings outperformance compared to guidance reflects strong execution in our Progressive Leasing business, where our teams took deliberate actions to preserve portfolio health while expanding balance of share with key retail partners."
Progressive Leasing, the company’s core business, reported second-quarter GMV (Gross Merchandise Volume) of $413.9 million, down 8.9% compared to the same period in 2024. However, the provision for lease merchandise write-offs was 7.5% of leasing revenues, within the company’s targeted annual range of 6-8%.
Four Technologies, the company’s Buy Now, Pay Later platform, delivered exceptional growth with GMV increasing 166.5% and achieving its second consecutive quarter of positive pre-tax income.
PROG Holdings ended the quarter with $222 million in cash and $600 million in gross debt. The company repurchased $25.7 million of its stock during the quarter at an average price of $28.51 per share and paid a quarterly cash dividend of $0.13 per share.
Looking ahead, PROG Holdings raised the low end of its full-year 2025 guidance, now expecting adjusted earnings of $3.20-$3.35 per share on revenue of $2.45-$2.5 billion. For the third quarter, the company projects adjusted earnings of $0.70-$0.75 per share on revenue of $580-595 million.
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