Robert Griffin's questions to PROG Holdings (PRG) leadership • Q2 2025
Question
Robert Griffin of Raymond James inquired about the drivers behind the core Progressive GMV's performance, noting an apparent acceleration on a comparable basis. He also asked why the full-year guidance was not raised by the full amount of the Q2 earnings beat.
Answer
CEO Steven Michaels attributed the relative strength to specific initiatives with existing retail partners, such as e-commerce enhancements, rather than a broad consumer trade-down effect. CFO Brian Garner explained the guidance reflects several back-half headwinds: the roll-off of profitable Big Lots leases, a smaller starting portfolio size, and the negative margin impact of CECL accounting on the fast-growing Four Technologies business in Q4.