PROG Holdings, Inc.

Previous wording

Special Note Regarding Forward-Looking Information: Except for historical information contained herein, the matters set forth in this Form 10-Q are forward-looking statements. These statements are based on management’s current expectations and plans, which involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "intend," "plan," "project," "would," "should," and similar expressions. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the filing date of this Quarterly Report and which involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include factors that could cause our actual results and financial condition to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, among others, those discussed in "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 Annual Report") and in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the filing date of this Quarterly Report.

Current wording

Special Note Regarding Forward-Looking Information: Except for historical information contained herein, the matters set forth in this Form 10-Q are forward-looking statements. These statements are based on management’s current expectations and plans, which involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "delivering", "driving", "advancing," "expectation," "target," "uncertainty," "outlook," "assumes" and similar expressions. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the filing date of this Quarterly Report and which involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include factors that could cause our actual results and financial condition to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, among others, those discussed in "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 Annual Report") and in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the filing date of this Quarterly Report.

Previous wording

The following discussion should be read in conjunction with the condensed consolidated financial statements as of and for the three months ended March 31, 2025 and 2024, including the notes to those statements, appearing elsewhere in this report. We also suggest that management’s discussion and analysis appearing in this report be read in conjunction with the management’s discussion and analysis and consolidated financial statements included in our 2024 Annual Report.

Current wording

The following discussion should be read in conjunction with the condensed consolidated financial statements as of and for the three and six months ended June 30, 2025 and 2024, including the notes to those statements, appearing elsewhere in this report. We also suggest that management’s discussion and analysis appearing in this report be read in conjunction with the management’s discussion and analysis and consolidated financial statements included in our 2024 Annual Report.

Previous wording

Four Technologies, Inc. ("Four") is a Buy Now, Pay Later ("BNPL") company that allows shoppers to pay for merchandise through four interest-free installments. Four’s proprietary platform capabilities and its base of customers and retailers expand PROG Holdings’ ecosystem of financial technology offerings by introducing a payment solution that further diversifies the Company's consumer financial technology offerings. Shoppers use Four to purchase furniture, clothing, electronics, health and beauty products, footwear, jewelry, and other consumer goods from retailers across the United States. Four is not expected to be a reportable segment in 2025 as its financial results are not expected to be significant to the Company's consolidated financial results in 2025. Four's financial results are reported within "Other" for segment reporting purposes.

Current wording

Four Technologies, Inc. ("Four") is a Buy Now, Pay Later ("BNPL") company that allows shoppers to pay for merchandise through four interest-free installments. Four’s proprietary platform capabilities and its base of customers and retailers expand PROG Holdings’ ecosystem of financial technology offerings by introducing a payment solution that further diversifies the Company's consumer financial technology offerings. Shoppers use Four to purchase clothing, health and beauty products, footwear, jewelry, and other consumer goods from retailers across the United States. Four is not expected to be a reportable segment in 2025 as its financial results are not expected to be significant to the Company's consolidated financial results in 2025. Four's financial results are reported within "Other" for segment reporting purposes.

Previous wording

Progressive Leasing entered the first quarter of 2025 with a larger lease portfolio, as measured by its gross leased asset balance, which resulted in an increase in revenues when compared to the first quarter of 2024. Despite the increase in demand for our lease-to-own offerings during 2024, the Company continues to operate in a challenging macroeconomic environment. For example, one of Progressive Leasing's major POS partners filed for bankruptcy in late 2024, resulting in the permanent closure of many of its stores. The loss of this POS partner resulted in an unfavorable impact on Progressive Leasing's GMV in the first quarter of 2025.

Current wording

Progressive Leasing entered 2025 with a larger lease portfolio, as measured by its gross leased asset balance, compared to 2024, which resulted in an increase in lease revenues in the first half of 2025 when compared to the same period in 2024. The Company continues to operate in a challenging macroeconomic environment. For example, Big Lots, Inc. ("Big Lots"), one of Progressive Leasing's major POS partners filed for bankruptcy in late 2024, resulting in the closure of many of its stores. The loss of Big Lots resulted in an unfavorable impact on Progressive Leasing's Gross Merchandise Volume ("GMV"), revenue, and earnings before income tax expense in the first half of 2025.

Previous wording

Progressive Leasing customer payment delinquencies were elevated at the end of 2024 and during the first quarter of 2025, which prompted us to tighten our decisioning posture to maintain a healthy lease portfolio. The higher delinquencies resulted in the provision for lease merchandise write-offs, as a percentage of lease revenues, increasing to 7.4% in the first quarter of 2025 compared to 7.0% in the same period in 2024, but still within the Company's targeted annual range of 6% to 8%.

Current wording

Progressive Leasing customer payment delinquencies were elevated at the end of 2024 and during the first quarter of 2025, which prompted us to tighten our decisioning posture to maintain a healthy lease portfolio. While that action benefited our lease portfolio performance and helped us achieve a provision for lease merchandise write-offs of 7.5% of lease revenues in the second quarter of 2025, it also had an unfavorable impact on Progressive Leasing's GMV during that period.

Previous wording

Due to inflationary pressures in recent years, the cost of living remains significantly higher than it was prior to 2020, particularly with respect to housing, food and gas costs. We believe the increased cost of living has had a disproportionate negative effect on the customers we serve and an unfavorable impact on our GMV and financial performance in the first quarter of 2025. We believe the inflationary pressures, the cost of living and elevated interest rates for extended periods, coupled with uncertainty in the overall macroeconomic environment, including recent changes in tariff-related policies, also unfavorably impacted consumer confidence within our customer base, resulting in a decrease in demand for the types of merchandise offered by many of our key national and regional POS partners.

Current wording

Due to inflationary pressures in recent years, the cost of living remains significantly higher than it was prior to 2020, particularly with respect to housing, food and gas costs. We believe the increased cost of living has had a disproportionate negative effect on the customers we serve and an unfavorable impact on our GMV and financial performance in the first half of 2025. We believe the inflationary pressures, the cost of living and elevated interest rates for extended periods, coupled with uncertainty in the overall macroeconomic environment, including recent changes in tariff-related policies, also unfavorably impacted consumer confidence within our customer base, resulting in a decrease in demand for the types of merchandise offered by many of our key national and regional POS partners.

Previous wording

•GMV decreased by $16.6 million for Progressive Leasing and increased by $4.7 million for Vive in the first quarter of 2025, compared to the same period in the prior year. The decrease in GMV for Progressive Leasing was due to the bankruptcy of a major POS partner in late 2024 and tightening of our decisioning posture. We believe the reduction in GMV was also driven by inflationary pressures, elevated cost of living, and an uncertain macroeconomic outlook, all of which have negatively impacted consumer confidence and demand for our lease-to-own offering when compared to the same period in the prior year. The increase in GMV for Vive was due to the expansion of loan origination programs associated with Vive's national retail merchants. GMV from our Other operations increased by $71.1 million, due to an increase in Four loan originations in the first quarter of 2025 compared to the first quarter of 2024.

Current wording

•GMV decreased by $40.6 million for Progressive Leasing and increased by $8.2 million for Vive in the second quarter of 2025, compared to the same period in the prior year. The decrease in GMV for Progressive Leasing was due to the bankruptcy of Big Lots in late 2024 and tightening of our decisioning posture. We believe the reduction in GMV was also driven by inflationary pressures, elevated cost of living, and an uncertain macroeconomic outlook, all of which have negatively impacted consumer confidence and demand for our lease-to-own offering. The increase in GMV for Vive was due to the expansion of loan origination programs associated with Vive's national retail merchants. GMV from our other operations increased by $93.5 million, due to an increase in Four loan originations in the second quarter of 2025 compared to the second quarter of 2024.

Previous wording

•Earnings before income taxes increased to $47.2 million compared to $31.6 million in the same period in 2024. The increase was primarily driven by lower restructuring costs and increased revenues. The increase in earnings before income taxes was partially offset by increases in the provision for lease merchandise write-offs, provision for loan losses, and certain sales, general and administrative expenses.

Current wording

•Earnings before income taxes increased to $52.6 million compared to $48.3 million in the same period in 2024. The increase was primarily driven by lower restructuring costs and increased revenues, partially offset by increases in provision for loan losses, and certain sales, general and administrative expenses.

Previous wording

Progressive Leasing's GMV decreased compared to the first quarter of 2024 due to the bankruptcy of a major POS partner in late 2024 and tightening of our decisioning posture. We believe the reduction in GMV was also driven by inflationary pressures, an elevated cost of living, and an uncertain macroeconomic outlook, all of which have negatively impacted consumer confidence and demand for our lease-to-own offering when compared to the same period in the prior year. E-commerce channels generated 16.8% of Progressive Leasing's GMV in the first quarter of 2025 compared to 16.3% in the first quarter of 2024. The increase in Vive's GMV was due to the expansion of loan origination programs associated with Vive's national retail merchants when compared to the same period in the prior year. GMV from Other increased due to an increase in Four loan originations.

Current wording

Progressive Leasing's GMV decreased compared to the second quarter of 2024 due to the bankruptcy of Big Lots in late 2024 and tightening of its decisioning posture. We believe the reduction in GMV was also driven by inflationary pressures, an elevated cost of living, and an uncertain macroeconomic outlook, all of which have negatively impacted consumer confidence and demand for our lease-to-own offering. E-commerce channels generated 20.9% of Progressive Leasing's GMV in the second quarter of 2025 compared to 14.4% in the second quarter of 2024. The increase in Vive's GMV was due to the expansion of loan origination programs associated with Vive's national retail merchants when compared to the same period in the prior year. GMV from Other increased due to an increase in Four loan originations.

Previous wording

The number of active customers for Progressive Leasing and Vive was essentially flat compared to the same period in the prior year. The increase in the number of customers for Other was the result of continued growth in Four and our other strategic businesses.

Current wording

The number of active customers for Progressive Leasing decreased due to the tightening of our decisioning posture and the bankruptcy of Big Lots in late 2024. The number of active customers for Vive increased due to an increase in loan originations when compared to the same period in the prior year. The increase in the number of customers for Other was the result of continued growth in Four and our other strategic businesses.

Previous wording

In this MD&A section, we review our condensed consolidated results. For the three months ended March 31, 2025 and the comparable prior year periods, some of the key revenue, cost and expense items that affected earnings before income taxes were as follows:

Current wording

In this MD&A section, we review our condensed consolidated results. For the three and six months ended June 30, 2025 and the comparable prior year periods, some of the key revenue, cost and expense items that affected earnings before income taxes were as follows:

Previous wording

Revenues. We separate our total revenues into two components: (i) lease revenues and fees and (ii) interest and fees on loans receivable. Lease revenues and fees include all revenues derived from lease agreements from our Progressive Leasing segment. Lease revenues are recorded net of a provision for uncollectible renewal payments. Interest and fees on loans receivable represents merchant fees, finance charges and annual and other fees earned on outstanding loans in our Vive segment and, to a lesser extent, from Four and our other strategic businesses.

Current wording

Revenues. We separate our total revenues into two components: (i) lease revenues and fees and (ii) interest and fees on loans receivable. Lease revenues and fees include all revenues derived from lease agreements from our Progressive Leasing segment. Lease revenues are recorded net of a provision for uncollectible renewal payments. Interest and fees on loans receivable represents merchant fees, finance charges and annual and other fees earned on outstanding loans in our Vive segment and from Four and our other strategic businesses.

Previous wording

Information about certain significant components of operating expenses for the first quarter of 2025 as compared to the first quarter of 2024 is as follows:

Current wording

Information about certain significant components of operating expenses for the second quarter of 2025 as compared to the second quarter of 2024 is as follows:

Previous wording

Professional services increased $3.1 million compared to the same period in 2024, primarily due to a $3.0 million increase at Progressive Leasing resulting from higher technology-related costs and an increase in legal costs. Professional services also increased $0.1 million at Vive.

Current wording

Professional services increased $3.6 million compared to the same period in 2024, primarily due to a $3.3 million increase at Progressive Leasing resulting from higher technology-related expenses, legal costs, and contract labor costs for various technology initiatives and customer service support. Professional services also increased $0.3 million at Vive resulting from an increase in legal costs.

Previous wording

Other sales, general and administrative expense increased $3.1 million compared to the same periodin 2024, primarily due to a $2.8 million increase within our Other operations, due to higher processing fees from our continued GMV growth at Four and our other strategic operating expenses.

Current wording

Other sales, general and administrative expense increased $2.7 million compared to the same periodin 2024, primarily due to a $2.4 million increase within our Other operations, due to higher customer payment processing fees arising from the continued GMV growth at Four and our other strategic operations.

Previous wording

Provision for loan losses increased $3.3 million compared to the same period in 2024. The increase was primarily the result of a $2.6 million increase in the provision for loan losses for our Other operations, due to the continued growth of our Four business and our other strategic operations. The provision for loan losses at Vive also increased $0.7 million resulting from a higher allowance for loan receivable losses primarily driven by uncertainty in the overall macroeconomic environment.

Current wording

Provision for loan losses increased $5.4 million compared to the same period in 2024. The increase was primarily the result of a $4.4 million increase in the provision for loan losses for our Other operations, due to the continued growth of our Four business and our other strategic operations. The provision for loan losses at Vive also increased $1.0 million resulting from an increase in GMV compared to the same period in 2024.

Previous wording

The increase in Progressive Leasing revenues was primarily due to a larger lease portfolio entering the period, as measured by its gross leased asset balance, resulting from the 9.1% increase in GMV for the fourth quarter of 2024 as compared to the fourth quarter of 2023. Progressive Leasing revenues also increased due to higher early buyouts in the first quarter of 2025 compared to the same quarter in 2024. Vive revenues declined slightly due to a smaller loan portfolio entering the first quarter of 2025 as compared to the first quarter of 2024. The increase to Other revenue was primarily driven by an increase in Four's GMV as compared to the same period in 2024, due to increased loan originations.

Current wording

The increase in Progressive Leasing revenues was primarily due to a larger lease portfolio entering the period, as measured by its gross leased asset balance, resulting from the 9.1% increase in GMV for the fourth quarter of 2024 as compared to the fourth quarter of 2023. The increase in revenues was partially offset by the decrease in GMV at Progressive Leasing for the six months ended June 30, 2025, as compared to the same period in the prior year. Vive revenues were flat compared to the six months ended June 30, 2024. The increase in Other revenue was primarily driven by a 156.8% increase in Four's GMV as compared to the six months ended June 30, 2024.

Previous wording

Restructuring expense decreased $18.0 million at Progressive Leasing compared to the same period in 2024. In 2025, there were no new restructuring activities and the expense was not significant. For the same period in 2024, restructuring costs included $7.8 million associated with the early termination of an independent sales agent agreement, $6.0 million of operating lease right-of-use asset and other fixed asset impairment charges related to the reduction of Progressive Leasing office space, $4.1 million of employee severance within Progressive Leasing and $0.1 million of other restructuring costs.

Current wording

Restructuring expense decreased $20.9 million compared to the same period in 2024. In 2025, there were no new restructuring activities. For the six months ended June 30, 2024, restructuring costs included $7.8 million associated with the early termination of an independent sales agent agreement for Progressive Leasing, $2.0 million associated with the early termination of a third party vendor agreement within other strategic operations, $6.0 million of operating lease right-of-use asset and other fixed asset impairment charges related to the reduction of Progressive Leasing office space, and $5.0 million of employee severance for Progressive Leasing and our other strategic operations.

Previous wording

Depreciation of lease merchandise. Depreciation of lease merchandise increased by 6.7% during the three months ended March 31, 2025 compared to the same period in 2024. The increase was primarily due to growth in the Company's lease portfolio entering the first quarter of 2025. As a percentage of lease revenues and fees, depreciation of lease merchandise increased to 70.7% from 69.5% in the prior year quarter, primarily due to a higher level of early buyouts during the three months ended March 31, 2025 as compared to the same period in 2024.

Current wording

Depreciation of lease merchandise. Depreciation of lease merchandise increased by 3.6% during the six months ended June 30, 2025 compared to the same period in 2024. The increase was primarily due to growth in the Company's lease portfolio entering 2025. As a percentage of lease revenues and fees, depreciation of lease merchandise increased to 69.2% from 68.5% in the prior year period, primarily due to a higher level of early buyouts during the six months ended June 30, 2025 as compared to the same period in 2024.

Previous wording

Provision for lease merchandise write-offs. The provision for lease merchandise write-offs increased $4.9 million compared to the same period in 2024. The provision for lease merchandise write-offs as a percentage of lease revenues increased to 7.4% during the first quarter of 2025 from 7.0% in the same period in 2024. The increase was due to higher write-offs and delinquencies in the first quarter of 2025 compared to the same period in 2024. Given the significant economic uncertainty resulting from persistent inflationary pressures, increased interest rates for an extended period, and/or the impact of tariffs, and the potential effects of such developments on Progressive Leasing's POS partners, customers, and business going forward, a high level of estimation was involved in determining the allowance as of March 31, 2025. Actual lease merchandise write-offs could differ materially from the allowance for those write-offs.

Current wording

Provision for lease merchandise write-offs. The provision for lease merchandise write-offs increased $3.7 million when compared to the same period in 2024. The provision for lease merchandise write-offs as a percentage of lease revenues increased to 7.4% during the six months ended June 30, 2025 from 7.3% in the same period in 2024. The increase in the provision was a result of higher write-offs and delinquencies compared to the same period in 2024. Given the significant economic uncertainty resulting from persistent inflationary pressures, increased interest rates for an extended period, and/or the impact of tariffs, and the potential effects of such developments on Progressive Leasing's POS partners, customers, and business going forward, a high level of estimation was involved in determining the allowance as of June 30, 2025. Actual lease merchandise write-offs could differ materially from the allowance for those write-offs.

Previous wording

The loss before income tax expense within Other primarily relates to losses from our other strategic operations. Factors impacting the change in earnings before income taxes for each reporting segment are discussed above.

Current wording

The loss before income tax expense within Other primarily relates to losses from our other strategic operations. Factors impacting the change in earnings before income tax expense for each reporting segment are discussed above.

Previous wording

Income tax expense increased to $12.5 million for the three months ended March 31, 2025 compared to $9.6 million in the prior year comparable period, primarily due to higher earnings before income tax expense. The effective income tax rate was 26.5% for the three months ended March 31, 2025 compared to 30.4% for the same period in 2024. The decrease in the effective income tax rate was primarily the result of discrete income tax expense in 2024 related to uncertain tax position liabilities.

Current wording

Income tax expense increased to $26.6 million for the six months ended June 30, 2025 compared to $24.2 million in the prior year comparable period due to higher earnings before income tax expense. The effective income tax rate was 26.7% for the six months ended June 30, 2025 compared to 30.2% for the same period in 2024. The decrease in the effective tax rate was primarily due to discrete income tax expense recognized in 2024 related to uncertain tax position liabilities and stock-based compensation.

Previous wording

•Cash and cash equivalents increased $117.6 million to $213.3 million during the three months ended March 31, 2025. For additional information, refer to the "Liquidity and Capital Resources" section below.

Current wording

•Cash and cash equivalents increased $126.3 million to $222.0 million during the six months ended June 30, 2025. For additional information, refer to the "Liquidity and Capital Resources" section below.

Previous wording

•Accounts receivable, net of allowances, decreased $13.6 million primarily due to a 32.7% decrease in Progressive Leasing's GMV for the first quarter of 2025 as compared to the fourth quarter of 2024 and seasonally higher customer payment trends in the first quarter.

Current wording

•Accounts receivable, net of allowances, decreased $19.7 million primarily due to a decrease in Progressive Leasing's GMV for the second quarter of 2025 as compared to the fourth quarter of 2024.

Previous wording

•Lease merchandise, net of accumulated depreciation and allowances, decreased $124.8 million due primarily to a 32.7% decrease in Progressive Leasing's GMV for the first quarter of 2025 as compared to the fourth quarter of 2024. Seasonally higher exercises of early buyouts during the first quarter also contributed to the decrease.

Current wording

•Lease merchandise, net of accumulated depreciation and allowances, decreased $153.9 million due primarily to a decrease in Progressive Leasing's GMV for the second quarter of 2025 as compared to the fourth quarter of 2024. Higher exercises of early buyouts during the six months ended June 30, 2025 also contributed to the decrease.

Previous wording

•Debt, net decreased $49.7 million due to repayment in January 2025 of the $50.0 million balance that was outstanding on the Revolving Facility as of December 31, 2024.

Current wording

•Debt, net decreased $49.4 million primarily due to repayment in January 2025 of the $50.0 million balance that was outstanding on the Revolving Facility as of December 31, 2024.

Previous wording

As of March 31, 2025, the Company had $213.3 million of cash, $350.0 million of availability under the Revolving Facility, and $600.0 million of gross indebtedness.

Current wording

As of June 30, 2025, the Company had $222.0 million of cash, $350.0 million of availability under the Revolving Facility, and $600.0 million of gross indebtedness.

Previous wording

Cash provided by operating activities was $209.9 million and $135.7 million during the three months ended March 31, 2025 and 2024, respectively. The $74.2 million increase in operating cash flows was primarily due to an increase in cash received from exercises of early lease buyout options, a $15.2 million decrease in cash paid for lease merchandise, and a $7.6 million decrease in cash payments on accounts payable and accrued expenses. Operating cash flows were negatively impacted by a $4.1 million increase in cash paid for taxes when compared to the same period in 2024. Other changes in cash provided by operating activities are discussed above in our discussion of results for the three months ended March 31, 2025.

Current wording

Cash provided by operating activities was $279.8 million and $191.1 million during the six months ended June 30, 2025 and 2024, respectively. The $88.7 million increase in operating cash flows was primarily due to a $51.1 million decrease in cash paid for lease merchandise and an increase in cash received from exercises of early lease buyout options. Operating cash flows were negatively impacted by a $32.3 million increase in cash paid for taxes when compared to the same period in 2024. Other changes in cash provided by operating activities are discussed above in our discussion of results for the six months ended June 30, 2025.

Previous wording

Cash used in investing activities was $4.1 million and $3.6 million during the three months ended March 31, 2025 and 2024, respectively. The $0.5 million increase in investing cash outflows was primarily the result of an $88.9 million increase in cash investments in loans receivable due mainly to growth in Four loan originations. This increase in loan originations was partially offset by a $88.3 million increase in proceeds from loans receivable, primarily due to an increase in Four loan repayments.

Current wording

Cash used in investing activities was $34.8 million and $17.8 million during the six months ended June 30, 2025 and 2024, respectively. The $17.0 million increase in investing cash outflows was primarily the result of a $197.6 million increase in cash investments in loans receivable, due mainly to growth in loan originations at Four and Vive. This increase in loan originations was partially offset by a $180.6 million increase in proceeds from loans receivable, primarily due to an increase in Four loan repayments.

Previous wording

Cash used in financing activities was $88.2 million during the three months ended March 31, 2025 compared to $34.7 million during the same period in 2024. Cash used in financing activities during the three months ended March 31, 2025 was primarily for the repayment of $50.0 million that was drawn on our revolving credit facility during the fourth quarter of 2024, $26.1 million for share repurchases and $5.3 million paid for cash dividends. Cash used in financing activities during the three months ended March 31, 2024 consisted of no debt repayment, $24.4 million of share repurchases and $5.2 million paid for cash dividends.

Current wording

Cash used in financing activities was $118.7 million during the six months ended June 30, 2025 compared to $78.6 million during the same period in 2024. Cash used in financing activities during the six months ended June 30, 2025 was primarily for the repayment of $50.0 million that was drawn on our revolving credit facility during the fourth quarter of 2024, $51.8 million for share repurchases and $10.4 million paid for cash dividends. Cash used in financing activities during the six months ended June 30, 2024 was primarily for the Company's repurchase of $61.2 million of its common stock and $10.3 million paid for cash dividends.

Previous wording

The Company repurchased 935,992 shares for $26.1 million during the three months ended March 31, 2025. That amount does not include any excise tax that may be assessed on those repurchases. As of March 31, 2025, we had the authority to purchase additional shares up to our remaining authorization limit of $335.2 million.

Current wording

The Company repurchased 1,835,792 shares for $51.8 million during the six months ended June 30, 2025. That amount does not include any excise tax that may be assessed on those repurchases. As of June 30, 2025, we had the authority to purchase additional shares up to our remaining authorization limit of $309.6 million.

Previous wording

On February 26, 2025, our Board of Directors declared a quarterly cash dividend in the amount of $0.13 per share of outstanding common stock, which was paid on March 25, 2025. Aggregate dividend payments during the three months ended March 31, 2025 were $5.3 million. While we expect to continue paying quarterly cash dividends in future periods, the future payment of dividends, if permitted, will be at the sole discretion of our Board of Directors and will depend on our capital allocation strategy at that time as well as other factors, including our earnings, financial condition, and other considerations that our Board of Directors deems relevant.

Current wording

On May 7, 2025, our Board of Directors declared a quarterly cash dividend in the amount of $0.13 per share of outstanding common stock, which was paid on June 3, 2025. Aggregate dividend payments during the six months ended June 30, 2025 were $10.5 million. While we expect to continue paying quarterly cash dividends in future periods, the future payment of dividends, if permitted, will be at the sole discretion of our Board of Directors and will depend on our capital allocation strategy at that time as well as other factors, including our earnings, financial condition, and other considerations that our Board of Directors deems relevant.

Previous wording

During the three months ended March 31, 2025, we made net tax payments of $0.3 million. Within the next nine months, we anticipate making estimated tax payments of $80.2 million for United States federal income taxes and state income taxes.

Current wording

During the six months ended June 30, 2025, we made net tax payments of $45.0 million. Within the next six months, we anticipate making an immaterial amount of estimated net tax payments for United States federal income taxes and state income taxes. That expectation includes anticipated favorable impacts on the Company's cash taxes resulting from the One Big Beautiful Bill Act, which was signed into law on July 4, 2025.

Previous wording

Deferred income tax liabilities as of March 31, 2025 were $64.4 million. Deferred income tax liabilities are calculated based on temporary differences between the tax basis of assets and liabilities and their respective book basis, which will result in taxable amounts in future years when the liabilities are settled at their reported financial statement amounts. The results of these calculations do not have a direct connection with the amount of cash taxes to be paid in any future periods.

Current wording

Deferred income tax liabilities as of June 30, 2025 were $54.3 million. Deferred income tax liabilities are calculated based on temporary differences between the tax basis of assets and liabilities and their respective book basis, which will result in taxable amounts in future years when the liabilities are settled at their reported financial statement amounts. The results of these calculations do not have a direct connection with the amount of cash taxes to be paid in any future periods.

Previous wording

The Company, through its Vive business, had unconditionally cancellable unfunded lending commitments totaling approximately $459.8 million and $461.1 million as of March 31, 2025 and December 31, 2024, respectively, that do not give rise to revenues and cash flows. These unfunded commitments arise in the ordinary course of business from credit card agreements with individual cardholders that give them the ability to borrow, against unused amounts, up to the maximum credit limit assigned to their account. While these unfunded amounts represented the total available unused lines of credit, the Company does not anticipate that all cardholders will utilize their entire available line at any given point in time. Commitments to extend unsecured credit are agreements to lend to a cardholder so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Current wording

The Company, through its Vive business, had unconditionally cancellable unfunded lending commitments totaling approximately $460.2 million and $461.1 million as of June 30, 2025 and December 31, 2024, respectively, that do not give rise to revenues and cash flows. These unfunded commitments arise in the ordinary course of business from credit card agreements with individual cardholders that give them the ability to borrow, against unused amounts, up to the maximum credit limit assigned to their account. While these unfunded amounts represented the total available unused lines of credit, the Company does not anticipate that all cardholders will utilize their entire available line at any given point in time. Commitments to extend unsecured credit are agreements to lend to a cardholder so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.