Fintech PROG hits 7-month low after downbeat FY 2025 forecast

PROG Holdings

19/02/2025 17:16

** Shares of fintech PROG Holdings  PRG.N  fall as much as
23.5%, hitting their lowest since July 12
    ** Stock last down 22.9% at $32.94
    ** PRG forecast FY 2025 adjusted EPS to be between $3.10 and
$3.50, compared with analysts' estimate of $3.88, according to
data compiled by LSEG
    ** Company expects annual revenue to be between $2.52
billion and $2.59 billion, compared with the estimate of $2.62
billion
    ** PRG CEO Steve Michaels tells analysts the firm, due to
higher delinquencies, implemented tightening measures in Q4 and
again since the beginning of this year, which will create some
headwinds to gross merchandise volume (GMV) in 2025
    ** Q4 provision for lease merchandise write-offs is 7.9%,
slightly above PRG's expectation, driven by higher delinquencies
    ** Big Lots, one of PRG's large retail partners, filed for
bankruptcy protection last year and commenced liquidation
efforts
    ** That is also set to be a headwind to GMV growth this
year, Michaels says
    ** PRG shares jumped 36.7% in 2024

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))