Fintech firm PROG Holdings beats Q2 revenue estimates

Overview

• PROG Holdings Q2 revenue of $604.7 mln beats analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus, reflecting strong execution in leasing business

• Progressive Leasing's GMV down 8.9% but within targeted write-off range

Outlook

• PROG Holdings raises low end of 2025 revenue outlook to $2.45 bln

• Company expects 2025 net earnings between $120 mln and $125 mln

• PROG Holdings sees Q3 revenue between $580 mln and $595 mln

• Company projects Q3 adjusted EBITDA between $57 mln and $62 mln

Result Drivers

• PROGRESSIVE LEASING - Strong execution in leasing business despite GMV headwinds and loss of key retail partner, per CEO Steve Michaels

• TECHNOLOGY INITIATIVES - AI-powered tools and digital optimization enhance customer engagement and efficiency, driving top-of-funnel engagement

• FOUR TECHNOLOGIES - Over 200% revenue growth and continued profitability, contributing positively to company's ecosystem

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for PROG Holdings Inc is $36.50, about 21.6% above its July 22 closing price of $28.61

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw6WQ4l4a