PROG Holdings shares fell 4.7% following the quarter as investors reacted negatively to margin pressure and signs of cautious conditions in Progressive Leasing, despite strong GMV growth in other segments.
- Consolidated revenue grew 22% year-over-year to $720 million, near the high end of guidance.
- Adjusted EBITDA from continuing operations was $88.4 million with non-GAAP EPS of $1.19, both above the top of the outlook range.
- Progressive Leasing GMV grew 3.4% year-over-year, a recovery from Q1’s decline, but revenue declined due to a smaller average portfolio.
- Lease merchandise write-offs increased seasonally to 8.4% of Progressive Leasing revenue, modestly above normal seasonal expectations, driven by consumer cost pressures.
- Management emphasized disciplined credit decisioning and margin focus, but elevated write-offs and portfolio headwinds tempered confidence in the leasing segment’s near-term outlook.
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