PROG (PRG) investor relations material

Business model overview

• Operates four main businesses: Progressive Leasing, Four (Buy Now Pay Later), MoneyApp (cash advance), and Purchasing Power (retail installment contracts).

• Each business targets different consumer needs and funding timeframes, ranging from short-term cash advances to intermediate-term leases.

• Solutions are designed to be inclusive, offering options with no credit checks and fast access to funds or products.

Revenue streams and recognition

• Progressive Leasing recognizes revenue on a straight-line basis over the lease term, typically 12 months.

• Four generates revenue through a ~10% take rate on GMV, with streams from affiliate, interchange, late fees, and subscriptions.

• MoneyApp earns mainly from cash advance fees, with additional subscription and other revenues.

• Purchasing Power records product revenue gross at delivery and services/warranty revenue net of cost.

Cost structure and margin drivers

• Progressive Leasing's gross margin is revenue less depreciation of leased merchandise, with write-offs targeted at 6-8% of lease revenue.

• Four and MoneyApp do not own merchandise, so have no COGS; credit losses are estimated under CECL.

• Purchasing Power's margin is customer price minus wholesale cost, with services and warranties at 100% margin.