PROG (PRG) investor relations material

Strategic vision and business transformation

• Transitioned from a leasing-centric model to a unified, multi-product financial ecosystem serving 100M+ underserved consumers, integrating Progressive Leasing, Four Technologies (BNPL), MoneyApp (cash advance), and Purchasing Power (employer-based purchasing platform), leveraging cross-product data and harmonized decisioning to drive higher customer lifetime value and diversified growth.

• Acquired Purchasing Power to expand access to over 7M employees and 360+ employer clients, diversify revenue and risk, and unlock significant cross-sell potential with limited customer overlap.

• Focused on building an omnidirectional ecosystem with omni-channel distribution through exclusive retail contracts, employer access, and a growing direct-to-consumer footprint, positioning for scalable, profitable growth.

• Leveraged technology modernization, AI, and unified data infrastructure to drive faster decisions, higher conversion, and personalized experiences at scale, with investments in innovation and consumer experience.

• Cross-product engagement and ecosystem synergies are now a strategic initiative tied to executive compensation and long-term value creation.

Product and market development

• Progressive Leasing remains the largest commercial engine and a leader in lease-to-own, with exclusive long-term contracts covering ~70% of GMV and a focus on expanding retail partnerships and the D2C Prog Marketplace, which doubled GMV to $85M in 2025.

• Four Technologies (BNPL) achieved $736M+ GMV in 2025, with 80% from subscribers, a 13.5% adjusted EBITDA margin, a ~10% take rate, and a direct-to-consumer model driving repeat usage and profitability.

• MoneyApp, launched in 2022, surpassed 2M signups, 1.5M cash advances, and $13M revenue in 2025, offering fast, transparent, low-cost liquidity with AI-powered underwriting, targeting budget-constrained consumers.

• Purchasing Power, now integrated, serves 7M eligible employees at 360+ employers, with 98% client revenue retention and a unique payroll deduction model yielding lower loss rates and predictable cash flows, driving organic growth and cross-product opportunities.

• All products leverage shared data, unified decisioning, and embedded distribution, enabling cross-sell, lower acquisition costs, improved risk management, and significant white space in both retail and employer markets.

Financial outlook and guidance

• Issued multi-year financial outlook: 2025 consolidated GMV was $2.5B, revenue $2.41B, adjusted EBITDA $269.2M, and free cash flow $200.4M; 2026 guidance targets consolidated GMV CAGR of 26%-28%, revenue $2.95B–$3.07B, adjusted EBITDA $320M–$350M, and non-GAAP EPS $4.00–$4.45.

• 2025–2028 growth targets: consolidated GMV CAGR 20–25%, revenue CAGR 5–8%, adjusted EBITDA CAGR 13–16%, and adjusted EPS CAGR 17–20%.

• Progressive Leasing expected to grow GMV and EBITDA at mid-single digits, Four projected for 50%-100%+ EBITDA CAGR, and Purchasing Power targets low double-digit revenue and 25%-35% EBITDA CAGR.

• Margin expansion driven by scale, disciplined cost management, and technology investments, with a proven track record of maintaining portfolio yields within 6%-8% guardrails through economic cycles.

• Capital allocation priorities include deleveraging (targeting 1.5–2x leverage by end of 2026), funding organic and inorganic growth, and returning value to shareholders through dividends and opportunistic share repurchases, though no share repurchases are included in current guidance.