PROG (PRG) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenues were $604.7M, up 2.1% year-over-year, with net earnings of $38.5M and adjusted EBITDA of $73.5M; non-GAAP EPS was $1.02, up 10.9% year-over-year.

• Progressive Leasing showed resilience despite an 8.9% GMV decline due to a major partner bankruptcy, while Four Technologies achieved over 200% revenue growth and continued profitability.

• Technology and AI initiatives are driving efficiency, customer engagement, and digital enhancements.

• Active customer count for Progressive Leasing declined, while Vive and Other segments saw customer growth.

Financial highlights

• Consolidated revenue was $604.7M (+2.1% YoY); net earnings rose 13.9% to $38.5M; adjusted EBITDA was $73.5M (12.2% margin); non-GAAP EPS reached $1.02.

• Lease revenues and fees were flat at $569.7M; interest and fees on loans receivable grew 61.6% to $35.0M.

• Cash and equivalents stood at $222.0M; gross debt at $600M; net leverage ratio at 1.38x.

• Cash flow from operations for H1 2025 was $279.8M; $25.7M in stock repurchases during Q2.

• Q2 write-offs were 7.5%, 20 bps better than last year and within the 6%-8% target range.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $2.45B–$2.5B; adjusted EBITDA to $255M–$265M; non-GAAP EPS to $3.20–$3.35.

• Diluted EPS expected at $2.91–$3.06; Q3 2025 revenue outlook is $580M–$595M, with adjusted EBITDA of $57M–$62M.

• Guidance assumes continued soft demand for consumer durables, stable decisioning posture, and an effective tax rate of ~27%.

• Lower margins expected in the second half due to the loss of Big Lots, portfolio size pressures, and CECL accounting for Four Technologies.

• The One Big Beautiful Bill Act is expected to reduce future cash taxes due to 100% bonus depreciation.