PROG Holdings' fourth quarter was marked by a decline in revenue as the company navigated both a challenging retail environment and the fallout from a major partner bankruptcy. Management attributed the dip to reduced activity in Progressive Leasing, which was intentionally tightened to protect portfolio quality. CEO Steve Michaels pointed to “meaningful disruption following the bankruptcy of a large retail partner” and described the quarter as a period that required “balance, discipline, and focus.” Notably, the company’s buy now, pay later platform, For, delivered triple-digit growth, helping to offset leasing headwinds and demonstrating the value of a diversified product approach.

Is now the time to buy PRG? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From PROG’s Q4 Earnings Call

• Kyle Joseph (Stephens): Asked about the growth and synergy expectations for Purchasing Power. CFO Brian Garner described opportunities to drive cross-selling and operational efficiencies, with the largest upside from expanding customer penetration.
• Harold Groch (B. Riley Securities): Inquired about the impact of asset-backed securities (ABS) on Purchasing Power and the scalability of the BNPL segment. Garner explained that while ABS facilities have historically supported Purchasing Power, future cost improvements are possible as the business scales within PROG Holdings.
• Brad Thomas (KeyBanc Capital Markets): Questioned the softness in underlying leasing GMV and the outlook for partner-related headwinds. CEO Steve Michaels attributed quarterly softness to macro uncertainty but expects these headwinds to subside as the year progresses.
• Alessandra Jimenez (Raymond James): Sought clarity on synergy opportunities and near-term integration benefits from Purchasing Power. Michaels emphasized that accelerating growth and partner penetration are the largest synergy drivers in early integration.
• Vincent Caintic (BTIG): Asked for details on revenue and margin cadence through the year, especially across segments. Garner provided color on seasonality, highlighting that Q1 is typically the lowest for Purchasing Power, with improvement expected as the year advances.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) the pace of integration and revenue contribution from Purchasing Power, (2) the continued growth and profitability improvements of the For platform, and (3) signs of stabilization or renewed growth in Progressive Leasing’s GMV as macro pressures and partner disruptions are lapped. Monitoring credit quality and early indications from tax refund season will also be important indicators for near-term performance.

PROG currently trades at $37.10, up from $33.87 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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