PROG (PRG) Investor Presentation summary

Business overview and strategy

• Operates as a financial technology holding company offering flexible, inclusive payment options through Progressive Leasing, Vive Financial, Four Technologies, and Build.

• Partners with tens of thousands of retailers to provide point-of-sale lease-to-own, revolving credit, and BNPL solutions.

• Focuses on serving a large, underserved market, with an addressable market approximating 40% of the U.S. population.

• Employs a three-pillar strategy: grow GMV via partners and direct-to-consumer, enhance consumer experience, and expand the ecosystem.

• Utilizes proprietary AI/ML-based decisioning for instant approvals and portfolio optimization.

Financial performance and outlook

• FY 2024 revenue was $2.463B, adjusted EBITDA $274M, and non-GAAP EPS $3.41; cash flow from operations reached $138.5M.

• 2025 outlook projects total revenues of $2.425B–$2.5B, adjusted EBITDA of $245M–$265M, and non-GAAP EPS of $2.90–$3.30.

• Progressive Leasing segment expected to generate $2.3B–$2.36B in 2025 revenues.

• Historical lease-to-own annual write-off range is 6–8% of revenue.

• Margins have ranged from 9.9% to 14.5% over the past five years.

Market opportunity and customer profile

• Total addressable market for virtual lease-to-own (VLTO) estimated at $30–40B, with $22–31B in near-term untapped potential.

• Core customers are primarily Millennials and Gen X, with a median monthly income of $4,000, average age 39, and 76% renters.

• Progressive Leasing’s customer base is 51% female and 49% male.

• Major merchandise categories include furniture, appliances, electronics, jewelry, and mattresses.

• Partners with leading national retailers such as Best Buy, Lowe’s, and Mattress Firm.