PROG Holdings, Inc. Investor Day 2026

Good morning. Welcome to the Prague Holdings 2026 Investor Day. It's great to see so many familiar faces here today, and a warm welcome to those who have joined us via the webcast. My name is John Baugh. I'm the Vice President of Investor Relations at Prague Holdings. I joined the company in the fall of 2020. That was about three months before the Aarons business was spun. Before that, I spent 37 years on Wall Street as an equity research analyst, covering multiple industries, including furniture, bedding, floor carving, building products, hardline retailers, and the predecessor company to Progressive Aarons. A couple of housekeeping items before we get underway. this is the safe harbor statement we will be making forward-looking statements today i urge you to read the safe harbor statement i will spare you reading it myself um we do have our entire senior leadership team here today and if there's anything i'm excited about it's for you to get a chance to meet them for the first time i also need to tell you that we're going to webcast this event. It will be taped, and there will be an archived replay available after the event concludes. I'm going to walk you through the agenda very quickly before we turn it over to Steve. So Steve will lead us off. Steve is our CEO and president, and what he's going to do is sort of set the table. He's going to talk about our product ecosystem and how the products that we've assembled under the product holdings umbrella has set us up for growth with both our consumers and our partners. After Steve, we'll get presentations from our two largest businesses, the first being Progressive Leasing. That will be delivered by Nate Rowe. Nate Rowe is our chief commercial officer, and I'm really excited. part of his program will involve a fireside chat with two of our retail partners. Following Nate will be a purchasing power presentation. This is the business we just bought in January. That discussion will be led by Lee Wright, and he's going to talk about the opportunities in front of us to grow both the top and the bottom line of that business. at that point we'll have the first of what will be two q a sessions followed by a brief break when we reconvene after the break we'll bring up to the front john trainer john trainer is the president of four technologies our fastest growing business which is the bnpl business a lot of runway there an exciting story you're going to look forward to hearing from john Following that, we'll bring Lee Wright back up to the stage. Lee Wright runs MoneyApp. MoneyApp is our short-term financial solution product, which we are scaling rapidly. Then we'll bring up Sridhar Nalani. Sridhar is our chief technology officer. And Sridhar is going to sort of tie these presentations together from a tech perspective. He's going to discuss how what we are doing on investments, both historically and prospectively, has set us up to enhance both the consumer experience, our partner experience, and help us grow. At that point, our CFO Brian Garner will come up, and he'll tie together the presentations from a financial perspective, including giving, for the first time ever, a three-year financial outlook. At that point, Steve will come back up, wrap things up. We'll have the second of our two Q&A sessions, and then we'll promptly conclude at 12 noon. So with that, I'd like to get started, turn the presentation over to our president and CEO, Steve Michaels. Thank you.

Thanks, John, and good morning, everyone. It's great to be here with you this morning. And on behalf of our entire team, we really appreciate you spending the morning with us. We know how valuable your time is. So, like John said, I see a lot of familiar faces throughout the room as well. But for those who don't know me, let me give you a brief introduction before we get into the Prague story. I'm Steve Michaels, and I'm in my 31st year with this company. The first 25 of those years was spent with the previous parent, the Aarons Company, before we separated the businesses in 2020. While at Aarons, over those 25 years, I spanned a lot of different functions. I spent time in franchising, in operations, in strategy, in finance, in analytics, and e-commerce, before spending my last five years there as the CFO. So during the spin transaction, I was fortunate to be offered the role of leading Prague into its next phase as a standalone public company. So as you can imagine, over these 30 years, a lot has changed. But there's been one constant, our customer. And this customer deserves to be treated with respect and provided with solutions that solve real problems in their lives. And we are certainly proud of the service we provide and the lives we've had a positive impact on. so we're excited to share the product story with you today the first of our first ever investor day for us and i'm i look forward to you hearing from some of the broader team not just about where we've been but where we're going this is a business with a long runway for growth built on durable demand a set of distinctive capabilities and a clear focus strategy so everything we do is rooted in our mission to create a better today and unlock the possibilities of tomorrow through financial empowerment we build tools and systems that serve everyday real people these are people that i have had the pleasure of serving for over 30 years now i've visited their homes i have delivered furniture or a new refrigerator and i have worked out a payment plan with a family that experienced an unexpected bump in the road. These are folks just looking for transparent and flexible ways to get the things they need, and these are the solutions that we provide. So this mission grounds us, and as we've scaled, it's what attracts talent, drives innovation, and builds trust with our customers and our partners. So there are four key themes I want to share with you today as I kick this off. First, we're building an integrated industry-leading ecosystem to serve the near and below prime individuals and families. Historically, credit challenge customers have had to navigate a fragmented landscape, patching together opaque, high-cost solutions, or in some cases, just going without. We're changing that, and we're meeting real people where they are, with tools that offer flexibility, clarity, and trust. Second, we're expanding access and reach through direct-to-consumer, through retail channels, and now with the addition of purchasing power through employers, all to drive profitable growth. Together, these platforms allow us to meet the customer before they even start shopping, which we believe helps this access helps us drive lower customer acquisition costs and stronger lifetime value. Now throughout this presentation you'll hear more from the team about these products and this platform and the ecosystem that we're creating. Third we're leading into data AI and technology not just as buzzwords but as differentiators that make us faster more intelligent and more precise. Over the last three years, we've made strategic investments into our technology stack, with the results being faster decisions, higher conversion, more personalization at scale. And then finally, we have a clear focus strategy around our three-pillared grow, enhance, and expand. This is how we prioritize, how we hold ourselves accountable, how we operate. I'll dig into that a little bit more here shortly, but you'll see throughout today's presentation that these themes reoccur and they're why we believe Prague is positioned for long-term sustainable value creation. So what is Prague today? Well, we're a publicly traded company with over $2.5 billion of consolidated GMV on a trailing 12-month basis, a growing platform of customers, and an integrated set of products, progressive leasing, four technologies, money app, and purchasing power. Each serves a different use case, but they're unified in mission, and we're working hard to unify them operationally as well. As we scale, these products come together to create real network effects. One customer might start with a lease and then return to us for a cash advance or a BMPL transaction. And the important thing here is that we're not just building and talking about cross-sell. We're talking about creating a lifelong relationship with a trusted partner. So it's been quite a journey. Over the last few years, Prague has been on a transformation journey. And it started with the successful spin of Aarons in 2020, giving us the independence and focus to evolve our strategy and be more agile to create a scalable organization. But we did not have the luxury of a stable macro backdrop. We faced pressures across the board. Consumer headwinds, GMV volatility, inflation, shifts in retail traffic. but through all of it we stayed disciplined we tightened our decisioning posture we invested in our risk infrastructure and we began modernizing our technology stack this was all to lay the foundation for something much bigger than a single product business because we knew that to reach more customers and be more meaningful and unlock more durable growth we needed to evolve because we're building a financial ecosystem that brings together data decisioning and access all tailored to serve the financial realities of a consumer base that's a hundred million strong and all this is possible by our shared infrastructure cross-product data that improves risk accuracy personalization and marketing a harmonized decision engine that gets smarter with every transaction, and omni-channel distribution from in-store to mobile to employer portals. We're also embedding more intelligence into the customer journey from smart pre-approvals to re-engagement, which help drive conversion and improve lifetime value. But it's important to know that we're not trying to be all things to all people. We are leaning into the areas where we have a right to win, and that means scaling and investing in the businesses where we've proven product market fit, and the data support profitable growth. This is what gives us the confidence in the opportunity ahead, not because it's easy, but because we've done the hard work to be ready for it. Well, for those of you that have tuned into our earnings calls over the last couple of years, this slide could look and sound familiar because our three-pillared strategy of grow, enhance, expand has been our strategy for a couple of years now. And we consistently reinforce it because we believe it works. It's not just a slogan. It's how we operate, how we prioritize, and how we hold ourselves accountable across the organization. Let me break it down a little bit for you. Grow is about scaling the business. It's about growing new customers, onboarding new retailers, expanding employer reach, and scaling our direct-to-consumer channels. Enhance is all about the experience, but it's not just about the consumer experience. It's about our retailer experience, our employer experience, and our internal teams. it's from personalization from ai to streamlining application flows to creating more digital first interfaces the goal is to deliver a faster smarter experience across the board and expand speaks to innovation it's entering new or creating new products entering new verticals and leveraging our platform in new ways and this includes the addition of purchasing power the robust growth of four technologies, the organic development of MoneyApp, and the ongoing build-out of our Prague marketplace, our direct-to-consumer experience that allows consumers to shop when and where they want. It's not about complexity. It's about consistent, repeatable execution. So it all starts with the customer. So let's talk about who we serve. Roughly 40% of the U.S. population either lacks access to traditional credit or is underserved by the current financial system. These are hardworking families just navigating financial constraints. Many are managing low incomes with limited short-term savings and access to emergency liquidity. And credit histories vary. Some have thin credit files or no file at all. Others have had a life event or some event that has damaged their traditional bureau score. But at the same time, these consumers are still making essential purchases. They're starting families. They're moving homes. They're replacing broken appliances. They're living their lives. And they just need reliable access to products and services to support that. But as we've said, as I've said, traditional financing models often don't meet their needs, or they come with financial obstacles or barriers that are difficult to navigate. And so that's where we step in. We built an ecosystem designed for these realities, and one that offers flexible paths to ownership, short-term installment options, low-friction liquidity solutions, or employer-sponsored purchase options, purchase platforms. So this is about addressing a gap with products that are transparent, tech-enabled, and built for the way real people live. So what's powerful about the ecosystem is that while the entry point across the products may differ, the profile is remarkably consistent. We see strong commonalities across our platform. Most are earning under $100,000 annually. Many are navigating credit constraints, as I said, but they're digitally confident, mobile-first. and they value transparency and control. And they're often making purchase necessities, not just discretionary splurges. So while their core attributes are shared, their entry point can differ. What starts as a $100 cash advance, the customer could return for a $300 BMPL transaction, could evolve into a larger ticket purchase through progressive leasing or purchasing power. That's the power of a unified ecosystem. One customer, multiple products, and a single relationship that deepens over time. So think of this as a portfolio of financial tools. We're not trying to fit every customer into a single product. Instead, we're aligning the right solution to the right need based on purchase size, timing, income cycle, and customer preference. So let's walk through this a little bit. For larger essential items like electronics, furniture, appliances, Progressive Leasing offers a flexible lease-to-own solution without the need for traditional credit. It offers customers access to new high-quality merchandise, often from national retailers, with clear, flexible terms and early purchase options that create quick paths to ownership. For technologies, our buy-now-pay-later solution is for smaller-ticket, digitally-native transactions, often in lifestyle, fashion, or electronics, and it's preferred by younger customers who value control and transparency and speed but want to avoid the high-interest credit cards. Money app helps consumers navigate cash flow gaps. Whether we're talking about covering gas or groceries or an unexpected expense, allowing immediate access to short-term liquidity at a much lower cost than traditional bank overdraft fees delivers immediate value. And finally, purchasing power provides access to a wide selection of products and services through a benefit at work. It's simple, it's convenient, and for many, a more manageable way to handle mid-sized purchases, often tied to family needs or home upgrades. So all of these products bring something different to the table, but what they have in common is transparency, ease of use, and a commitment to serving customers in a way that fits their financial reality, not works against it. So each of our products plays a unique role in the ecosystem, and when they come together, they create value for the customer, but also for us. First, we see lower customer acquisition costs. When we acquire a customer through one product or channel, we can re-engage them through another, often without incremental spend. And this is a huge efficiency driver, especially as we scale up our direct-to-consumer efforts. Second, we have data sharing across our products, which improves our decisioning. Whether it's understanding repayment patterns on a money app, a cash advance transaction, or identifying positive behavior on a lease, that insight is fed back into the system, improving decision accuracy across the board. Third, we can get more personalized cross-product marketing, which leads to higher engagement, stronger conversion, and ultimately better retention. And finally, the ecosystem model gives us more strategic relevance. But it's not just with customers. It's with retailers. It's with employers and with affiliate networks. The more value we create and deliver, the more essential we become. And as we grow each of these businesses, it's important to know we're not just building silos. We're building connections. And that's where the real compounding value comes in. So let me step back for a minute and kind of talk about how this is already playing out throughout the system. Historically, Prague has been a leasing-centric, leasing-first model. And when we've talked about cross-sell, it's been in that context. It has largely been other products supporting leasing. And over the last couple of years, we've been working on this. And we've been tracking it and driving it. And so in 2024, starting from effectively zero, we drove about $22 million worth of GMV into the leasing business by marketing to customers of For and Money App. Last year, in 2025, that more than doubled to $45 million. That's real GMV, and that's a great outcome. But it's still a leasing-first, leasing-centric model. where we're going is fundamentally different we're evolving into an omnidirectional ecosystem where customers can enter through any product for leasing money app purchasing power and we can serve them with the next right solution across the platform in that future this is important in that future no single product sits at the center instead the ecosystem and more importantly the customer do. They're at the center. And to make the shift more real and less aspirational, we've made cross-product engagement a strategic initiative within the company, including having it as part of the executive compensation plans, because we feel like it is an unlock to future growth. So a key part of enabling that omnidirectional ecosystem is expanding access for our core customer. And that's exactly what the addition of Purchasing Power did for us as a complementary product to the rest of the products. So let's talk about Purchasing Power for a minute. Most of you will have seen that we closed on the acquisition in early January. It's a leading provider of voluntary benefit purchasing platform. Stepping back for a minute, for those of you that know us, you'll know that while we evaluate a lot of M&A opportunities, the bar for us to act is very high. Purchasing Power easily cleared our very disciplined M&A framework and it was a very highly strategic move for us. One that added scale, growth and profitability. Now Lee is going to give you much more of a deep dive into Purchasing Power here in a minute but I'll just give you a primer. So Purchasing Power embedded upstream at the employer level gives us access to over 7 million eligible employees through payroll relationships. We entered the conversation earlier in a trusted setting, which leads to lower customer acquisition costs and higher conversion potential. But importantly, it also adds important diversification to our model in both revenue and risk. The repayment structure for purchasing power through payroll deduction or payroll allotment has historically resulted in lower loss rates and more predictable cash flows. And excitingly, the cross-sell potential is significant. We've already started discussing with some of our leasings retail partners, adding purchasing power as a benefit for their employees, as well as approaching some of the partners that purchasing power has that happen to be retailers about offering leasing as a solution for their customers. These so far untapped revenue synergies are an exciting aspect of the acquisition, especially when you consider that there is limited overlap between purchasing power as customers and the customers Prague served prior to the acquisition. But I want to leave you with this on this one. It's not just an acquisition. It's an accelerator, and it expands our reach, strengthens our economics, and fits hand in glove with our mission of providing inclusive financial access. So now that I've talked about our products and our consumer, let's talk about skating to where the puck is going. We're seeing four major trends shape the financial lives of our consumers. First, there's rising demand for inclusive alternative payment options. As I've said, traditional credit is not available for a large part of the population, especially as prices stay high. Our ecosystem is built to meet that need with flexible products that provide access, not obstacles. Second, BMPL is becoming a mainstream financial budgeting tool and four technologies is built for this and it's not just for big purchases, it's for everyday spending. We offer simple interest-free payments with a digital experience that younger customers prefer. Third, there's explosive demand for cash advance products, but there's also growing concern around pricing and transparency. Money app offers a low friction, low cost, fast and consumer friendly solution without any hidden fees or any tipping feature. And finally, customers expect a mobile first embedded financial experience. And because our platforms share data and infrastructure, we can deliver just that. Smarter decisioning, seamless access across channels, and personalization at scale. Prague is well positioned to lead in all of these areas. So what sets us apart? What makes us hard to replicate? I'll talk about a couple of these six key advantages. First, our unified proprietary data engine allows us to make faster, more accurate decisions, as well as drive personalized engagement that results in stronger conversion and continuous improvement across every customer interaction. Second, our award-winning customer care team provides solutions that are responsive, empathetic, and tailored to each customer's needs. And lastly, our reputation as the gold standard for regulatory and compliance excellence makes us the go-to partner for national retailers and large employers alike. These strengths allow us to be the leader in addressing consumer needs through an inclusive financial ecosystem. And we've made strategic investments over the last several years to strengthen these advantages. We've modernized our lease engine. We've added AI into our decisioning, marketing, and customer service. And we've scaled new brands and entered new channels. And we've done all of that while maintaining a healthy balance sheet and strong cash flow. So we all know that execution starts with people. And at Prague, we built a leadership team with the right blend of industry experience, operational depth, and strategic alignment. We bring together executives with strong backgrounds in finance, technology, operations, compliance, product, commercial growth, all with operating with accountability around a shared mission. But what's most important is this team has led through both challenge and transformation. We've scaled new platforms, we've entered new businesses, and we've done it while staying focused and disciplined. I'm really happy to have this team here today, and you'll hear more from some of them throughout this morning's presentation. We're aligned, we're ambitious, and we're just getting started. We're also very fortunate to be guided by a great and diverse, highly engaged board of directors. Our board members bring deep expertise across financial services, entrepreneurship, product, marketing, compliance, capital markets, and they've been strong partners as we've evolved Prague into the ecosystem business you see today. They provide the oversight, governance, and long-term perspective that make sure that we're not just growing, but we're growing responsibly sustainably and with shareholders interest front and center it's a board we work very closely with and one that shares our vision of what this platform can become several of our board members are here today as well and i thank them for their guidance and support so let me bring it together for you as i tee up the next couple of hours for us We built a business that is fundamentally different from where we started. And importantly, it's meaningfully differentiated from others in the market. We're delivering structural cost advantages through AI and technology modernization. We're unlocking compounding growth through a multi-product ecosystem. We're activating proprietary data to drive smarter decisions and stronger personalization. And we're doing it all through a distribution model that is deeply embedded with long-term exclusive retailer contracts, employer access, including many of the large Fortune 500 companies, and a fast-growing direct-to-consumer footprint. So our platforms are more connected, our teams are more aligned, and our strategy to grow, enhance, and expand are delivering results. This is a business positioned to scale efficiently, grow profitably, and create long-term value for shareholders. We're incredibly excited about where we are, but even more confident in where we're going. So with that, I'll get it started on the deep dives, and I'll turn it over to Nate Rowe, Progressive Leasing's Chief Commercial Officer. Thank you.

Thanks, Steve. Good morning, everybody. Thanks for spending time with us today. It's good to be with you. Like Steve said, I'm Nate Rowe, the Chief Commercial Officer here at Progressive Leasing. And I've spent 19 years at the company, been in a lot of different roles that have put me in front of our retailers, our partners, and my favorite, our customers. I've spent a lot of time on retail showroom floors with sales associates, and a lot of time in the boardroom working on our product, what it looks like, and execution plans to launch that product with all of our national retail partners. Why I am still here after 19 years is pretty simple. The industry and our customer, they really matter. Progressive leasing creates a win-win for everybody involved. And as an example of that, in retail, when progressive leasing is offered, retailers sell a significantly more large amount of retail products. Our customers, they gain access they otherwise didn't have. And shareholders, they benefit. So I'm excited today to walk you through our leasing business, what it is, where it's headed, and why it's important. As the largest commercial engine inside Prague Holdings, understanding our leasing business is essential to understanding long-term shareholder returns. So before I go any deeper, I want to anchor us on a few things that actually matter, because everything else I'm going to say is going to ladder back to a few of these core ideas. So if you remember nothing else from my section today, remember these four things. First, at Progressive Leasing, we're capitalizing on the growing consumer need for flexible, transparent lease-to-own options. Second, we're building on our leadership position as the leasing partner of choice for large and national retail partners. Third, we're expanding availability and accessibility through our D2C platform called Prague Marketplace. and fourth we're investing in advanced technology capabilities for simple frictionless easy to use products and a future ready business so i want to talk a little bit about progressive and how it shows up in the real world what it looks like we were founded in 1999 so while our products feel modern if you're out in the marketplace you'd see a very modern parking very modern product But it's built on decades of experience, data, and operational excellence. You can see here on the screen, there's some of the largest names in retail in America today. And those are some of our large national retail partners that we have exclusive relationships with. Retailers that trust us with their customers and trust us with their brand. You can see on the screen as well, some of our product mix. Really strong representation in furniture, electronics, and appliances. and strong representation from mobile phones, jewelry, and mattresses. Now, this is a diverse product mix, but if you can think about what it means, these are large products that are generally coming with large tickets and usually at a time of need. If you were to go into a store and see a set of parents that are looking at a refrigerator and they're going to use progressive leasing, it's probably because they have kids at home and their refrigerator went out last night. That's a need that was probably unexpected. And that's where we show up. And that's why our partners and our customers trust us to be the leading in-store, app-based, and e-commerce, lease-to-own payment solutions provider. So scale and history, they matter, but they only matter if they translate into results. So I want to talk about why this matters for everyone involved. For our retailers, they get to expand total sales and access to customers they otherwise couldn't serve. They get integrations into their marketing systems and their point-of-sale systems for an easy-to-use product, and all of the progressive leasing transactions go through normal payment rails and don't have any merchant discount rate attached to them. For customers, they get to shop at the largest brands in retail, and they get to shop for products inside those large brands. We provide them with leasing power, purchasing power, right when it's not available, flexible payment options when they need it, and we allow customers to make purchases timely and simply. We also provide a seamless mobile experience that fits the world today and is easy and simple to use. So the value only works if it is delivered simply. Anyone in retail will tell you complexity kills conversion and simplicity is what matters. And that's where we went in progressive leasing. So I'm going to play a little demo here of what our product looks like so you can see it and how it shows up in the world. But before I do, I want to read a testimonial. Like I said earlier, one of my favorite parts of my job is I get to spend a lot of time with customers that actually use our product. And at Progressive, we survey our customers all the time to get even more feedback. This is a very easy one to read. Simple and fast. It literally took less than five minutes for the whole process. You'll see in this demo, that's not marketing company or words on a slide. That's our product truth. So as I play this video, keep that in mind. At Progressive Leasing, everything starts with a simple application. Customers can apply online, through our mobile app, or in-store where leasing is available. After an application is submitted, instant decision is rendered. That provides an approval for customers that they can then start to shop for the merchandise that they're in need of. And those approvals, they last for up to 90 days, so customers can make the best decision for themselves. At the time of purchase, a lease agreement is signed, and a small initial payment, the first payment, is taken. At that point, the customer can take their merchandise home, or they can arrange for delivery if that's better for them. Going forward, auto payments are set up and can be managed online, over the phone, or through the Progressive Leasing app. Like I said, and like the testimonial said, simple and fast. And that's, again, where Progressive Leasing wins. so behind every transaction is real people so today i want to tell you a story about maria one of our customers now maria is a persona but her story is real maria is a single mother she's about 40 years old and she has a daughter that's approaching her teenage years and they've lived together the majority of their life in the same room in the same home now maria as her daughter started approaching her teenage years started to get anxious started to get nervous she knew her daughter needed a place of privacy and a place to grow. And she had not been able to make that happen for her daughter. So she decided she would gather the funds that she could and go out into the world and try and fix this problem. So she went out, she found herself at a mattress firm, talking with a sleep expert. She realized pretty quickly that she didn't have the funds to fix the problem she was trying to provide a solution for. But the sleep expert at Mattress Firm gave her a menu of payment options for people that didn't have the money to pay cash that day. Maria knew her credit wasn't fantastic, so she wasn't overly excited to apply. But as a last-ditch effort, she decided to apply for Progressive Leasing's no-credit-needed solution. To her astonishment, in seconds, she was approved for up to $2,000. Maria had never experienced an approval like this before in her life. So you can imagine the transaction was pretty emotional. Tears were shed. Tears of happiness. tears that allowed access to replace limitation it was a special day for maria when she went home her daughter's life changed that day as well she now had a place of privacy a place to grow a place to sleep and rest and recover but most importantly maria's daughter now had a place to dream and that's what we do at progressive and that's what's important to us we're not just enabling purchases we're showing up for customers and creating possibilities at moments in life that really matter. So Maria's story, while it's true, it's not unique. Maria represents mainstream America, millions of customers that we serve each and every year. You can see the age of our customer goes from young to old and everything in between. Household income of about $50,000 a year. subprime credit scores skew a little bit on the female side but most importantly they're all out there looking for something that they need and that's where we show up from that's our goal that's our passion serving the needs of an underserved population with simple transparent easy to use payment solutions at a time of need so when you zoom out the opportunity is pretty substantial and we believe we're well positioned to capitalize on the growth drivers that are ahead of us right now. Earlier, Steve mentioned 40% of America, over 100 million Americans are credit underserved. And we see that group growing each and every year. Growing because more people are falling into those buckets and the younger generation that's unbanked and traditionally does not like normal financial tools. They want simple, transparent, easy to understand solutions. We continue to see interest from national and large retailers alike. These retailers have a lot of shoppers in their stores, but not everybody's buying right now. They're looking for ways to help convert those customers that are on their webpages and on their showroom floors with a need ready to buy. There's a lot of pent-up demand tied to some replacement cycles right now. If you look at furniture and mattress and appliances, those industries have had some headwinds in recent years. And we stand at the ready to help our customers as those replacement cycles come through. And our retailers trust us to be there at the time that those products need to be replaced. And finally, I've said it a couple times now, I really like to hear from our customers. One of the main things I always hear from them is how do I use the ability to buy with Progressive at more places? We continue to see expanding utilization and emerging verticals that are non-traditional lease-to-own categories. And that's really exciting to me and really exciting for our customer. So our strategy, it's built to capture these opportunities i'm going to walk through kind of these four pillars so that you can see how we plan to execute because strategy is great but you got to be able to execute it and given the opportunity that we have in front of us our strategy is very intentionally focused first we're going to continue to drive existing retail partner adoption and win new pipeline opportunities second we're passionate about elevating consumer and retailer experiences. And we're going to talk a little bit about that in a minute. Third, we're going to expand our D2C model. We've created Prague Marketplace, an exciting place where people can shop for things that they need, when they want, where they want, outside of retail if need be. And finally, we're executing a technology roadmap that has our product in a really good place today and our business ready for the future. So strategy only matters if you can execute on it, like I said. So let's take each of these a little bit deeper and go through them one by one. First, we're continuing to solidify our leadership position with leading national retailers. It's one of our greatest strengths to have these partners, and they look to us because of our unmatched compliance and operational excellence, our ability to have full-stack, consumer-friendly payment capabilities, and deep integrations into their systems, as well as account teams across the country that support their business and ours. One of my favorite stats from this last year is about 70% of our GMV is now contracted into the 2030s exclusively with our national retail partners. That doesn't happen unless things are working operationally, commercially, and reputationally. In fact, I think one of our retail partners said it best, you're not just the best partner in financial services, you're the best partner, period. so this foundation allows us not just to retain partners but to accelerate momentum across our ecosystem still focusing on our existing relationships we've got great products and decades-long relationships with our national partners that allows early transit uh early trans transactions into our ecosystem and cross-sell opportunities it allows us to focus on what we can do in the future together in the new large regional and national space we can We continue to sign up new partners each and every year. And one of my favorite stats from last year with one of our large retailers is over 75% of the applicants that came to Progressive were net new. Net new customers to Prague. And in the SMB space, we continue to target organic growth. And we continue to see more and more people in that SMB space look to us for our differentiating qualities. And we are investing in firepower in that space to grow that SMB business each and every day. You can see our position as the payment solution partner of choice continues to grow, not just for large retailers, but retailers of all size. Second, and we're passionate about this one, elevating consumer and retailer experiences. On the customer side, customers get streamlined application experiences that reduce friction, enhancements each and every year, smart decisioning capabilities, accelerating approval flow. So that's more approvals for more dollars today, not in future quarters, and improved web and in-store experiences that reduce friction and make our navigation and design simple to use. From a retail standpoint, we're transforming how retailers work with Prog. We're modernizing our retailer experiences, making it easier to use, faster to launch. For our existing partners, we have faster and easier integrations, enabling retailers to pilot things in days, not quarters, not years. They can try things quickly. These areas are a big reason why we have five to seven-year contracts, and those five to seven-year contracts enable us to invest in long-term capabilities for our customer and for our retail partners. Third, we're expanding our D2C model through what we call Prague Marketplace. Like I said earlier, this allows customers to shop for what they want, when they want, in leasable categories. This increases the frequency and personalization with which we can communicate with our customer. And I think most importantly, this allows customers to view progressive leasing as an extension of their existing wallet. We want them to be comfortable, and we want them to be able to shop just like they'd shop for anything else. And the marketplace is growing in adoption, and we're really excited about where it's headed in the future. Our last strategic pillar, technology. Underneath everything you've seen and heard today is a platform built to scale. Our faster partner integrations allow for consumers to transact now rather than future quarters. our ai-driven decisioning and customer service allow more focus on our cross-product ecosystem and our enhanced internal productivity allows us to continue to refine and capture new growth opportunities together these priorities drive durable growth for us for our retail partners and give our consumers more access so stepping back and looking at the leasing business i want to circle around to what i said matters most at progressive leasing we're passionate and we're capitalizing on the growing consumer need for transparent, simple-to-use payment solutions. Second, we're building on our leadership position as the leader in the space and the LTO provider of choice for large and national retailers. Third, we're expanding availability and accessibility through Prog Marketplace, our D2C platform. And fourth, we're investing in advanced technology capabilities that have a modern, simple, easy-to-use product today and a future-ready business. With that, I'm excited to have two of our national retail partners join me up here on the stage today for a discussion about progressive leasing and why it matters to them. So please help me welcome Jody Putnam and Lisa Walker up to the stage. We got a lot of chairs. We can just jump in right here. I think you got a turn. Yeah, good idea. Jody, Lisa, thanks so much for being here with us today. Really appreciate your partnership. I'm excited to be able to have a little chat today about Progressive Leasing. We'll start off with some easy questions. If you could each just introduce yourself, your role at the company, and how Progressive fits into your role. Jody, we can start with you.

Jody Putnam, Chief Retail Officer of Mattress Firm. Oversee our retail stores, our web business, our direct-to-consumer business, our business business. That's a lot of businesses there, I guess. Yeah, and how does Progressive fit into your role? Helps us drive conversion. It's one of the payment options we have for customers, as you mentioned, and as Steve did, that can't use traditional financing.

Hi, good morning. I'm Lisa Walker. I'm the president of jewelry services for Signet Jewelers. We are the parent company of Kay, Zales, Jared, Blue Nile, and other brands. And I'm the president of jewelry services, and that includes all of our payment products, our repair business, our warranty business, and our repair network of over 1,600 jewelers around the country. And how Progressive fits in. We believe at Signet, our mission is to celebrate life and help customers celebrate life and express love. And for many of those customers, our products are out of reach financially unless they have a payment solution like Progressive Leasing.

Great. Thank you. Jody, we'll start. Another question for you. Before partnering with Progressive Leasing, what customer market challenge were you trying to solve? And what does Progressive Leasing do to enable a solution to that problem?

You know, at the time, this was 16 years ago. 16 years ago. We had another competitor in the space that was using Progressive. And we thought it was a conversion play because we would have customers that we believed left our store and purchased from them. And that turned out to be true. What we didn't realize before partnering was that it wasn't just a conversion play because progressive did drive conversion, but also average order volume. Our average order volume was about 40% higher with prog leasing than it was with credit cards. That remains true today. And then it also drove traffic because once you put signs in the windows, the progressive name, people knew what it was. The idea of lease to own, which I didn't know what was at the time, our customers certainly did.

Appreciate that. Lisa, how about on the Cygnus?

Somewhat similar to what Jody said, but for us, we had an in-house credit solution. And when we decided to get out of that business, we were looking for payment partners that could help us service the entire credit spectrum. because we want to make sure that we can close sales for customers regardless of their credit score. And so Progressive Leasing offered that to us. I'll build on what Jody said, which is the signs in the window, et cetera, gave people confidence that they could come in and complete a purchase and not be embarrassed that they didn't have the funds to be able to purchase the item for their spouse, their partner, their mother, et cetera.

Appreciate that. So you talked a little bit about how progressives fit into your businesses. I wanted to ask, what drove the decision to partner with Progressive Leasing? Obviously, there was conversion, there were different things, but why Progressive and what drove that decision? and how does it align with your strategic priorities around customer access and growth?

Yeah, go ahead. So I think you touched on it, or Steve touched on it earlier. The innovation, the technology, the compliance, all of those things were very important to us as we got out of our own credit business. And so this whole idea of being able to bring in customers across the credit spectrum. And we stay with Progressive, one, because we have a long-term contract, But more importantly, it's about the innovation that Progressive is bringing to our business. And for a lot of our customers, they've used a Progressive lease either with us or somewhere else, and they come back, and that drives loyalty for us.

Jody, on the match-term side?

I think there's really two reasons. One, any partner that you're going to have, particularly in this space, you want to make sure that they live up to the customer service expectations. and we believe that progressive wood that's turned out to be monumentally true i think the the best version of that was in 2020 it's not the most recent version but the best version in 2020 obviously a lot of customers in this space um they many of them lost their jobs or furloughed or what have you um and progressives for those you don't know progressive reached out to all the customers during that time frame and extended terms as necessary to help them through it. And that certainly drove loyalty to Progressive from that customer, but it also helped with the retailer partner. The other is that our mission is to improve lives through sleep. And having Progressive on the floor, at least on option in general, democratizes that. We often talk about um health being or a three-legged stool of sleep diet and exercise and it's in the u.s we're the 34th most healthy country on earth but um we shouldn't be we have unfettered access to food we have um we exercise more than most but we also wear not sleeping like a badge of honor and so that that is starting to change and what's happened is that many uh use financing as an option to help that because fortunately for us, I guess, and fortunately, I don't know how you say it, but the better products cost more. They do help you sleep better, but they cost more. And Progressive has helped democratize that. It's allowed more people to buy the product that will

help them be healthier. Love that. Okay. A couple more questions here. What impact have you seen since working with Progressive, whether that's customer satisfaction, sales going up, the ability to serve a broader customer base? I think we've touched on a little bit, but any specifics that we haven't touched on that you'd want to call out? Lisa, we can start with you. I think

Jodi mentioned it. Our AOV with this customer cohort has increased by giving customers access to Progressive. One of the things that we did in partnership with Progressive this past year was we enabled something called Split Tender, which is a customer had $500 that they could use to buy an engagement ring. And so by enabling Split Tender, the customer was able to use their $500 and then also add a lease to that. And that has really helped. Customer satisfaction is high. I mentioned that earlier. People have come back, repeat, strong MPS scores. So our customers are happy with the product once they've engaged in it. And the other thing I would say is it gives confidence to our sales associates. And so our sales associates know when a customer comes in, if they don't open a buy on their traditional credit card, that they still can close a sale. And that's huge. That's huge for us. And one of the things that Progressive has done is they have a strong field sales support system. And so it creates a flywheel with our sales associates. They feel confident selling. They close more sales. And that creates that flywheel.

Great. Jody on the match firm side?

Yeah, I mentioned earlier that AOV conversion and traffic, it's also really good margin-wise because it's a less expensive financing option for us. And so that helps us. And Lisa mentioned the rep force. That's been incredibly important. Heck, we built it together. I guess it was about 13 years ago, the idea of not just selling new clients, but teaching the existing teams how to use the product, wildly important. We've asked other of our partners in the same space, not least on, but in the financing space, to do that as well. And they've all stepped up and begun to do it, too, because it's so important for what Lisa mentioned, that confidence on the sales floor.

Great. we've both been partners for a long time over a decade near a decade um what advice would you have for a retailer who doesn't have a lease to own provider today and is trying to make that decision um to to do lease to own and who to do it with knowing that we've been partners for a long time and knowing that competitors in our space have talked to you multiple times what advice do you have about lease to own and how to choose a partner lisa you want to go first oh you want me

Again, I think lease-to-own fills a gap in our payment solution suite because it attracts and converts customers that wouldn't otherwise be able to complete a purchase. And so I think lease-to-own is a really important piece of our payments ecosystem. And I said it earlier, you know, the partnership that we have with Progressive is second to none, which is why we're here to, Jody and I are both here today to support Prague at their investor day. But again, it's about innovation, quality, support. I think, you know, that's what Progressive brings to us.

Yeah, I think my first answer would be definitely get a least own partner. The second would be make sure you find one that you can trust. the the if you go back to how do you bring it to life there's pretty significant systems integrations uh that at least in my experience have gotten better every year as we've worked together longer um the the training that we do with associates stacks year after year so the longer they're here the better they get because the more training they've had those are things that uh you know make the relationship sticky and it's because they're hard to unwind so you want to make sure that you have a partner that you can trust because you're better off if you

are in a long-term partnership great okay last questions um looking ahead what do you value most about your relationship with progressive leasing and how do you see it evolving and get we'll get you excited for the future joe do we can start with you and then lisa will wrap it up i think

the partnership in general you know every quarter we get together and we do a business review that's important we do that with most partners um i think from an evolving standpoint is is continuing to lean in um with with marketing since andy's joined your team we've spent more time uh looking for ways to partner together to drive traffic to whether it's new traffic or repeat traffic uh so i would imagine that the evolution will come there and how do we how do we get more feet

in the door how we get more eyes on our website awesome um so i you know i mentioned it earlier it's the partnership it's the innovation it's the willingness to try things and our ability to try those quickly based on technology and i would agree with what jody said about the marketing the prog marketplace we think it's really exciting because it will bring new traffic and new eyeballs into into our stores people that didn't know that they could complete a purchase of that scale now it's enabled by prog through the marketing great well thank you both for being

here thanks for joining us today thank you for the for the time if you could help me one more time, round of applause for Jody and Lisa. Thank you. Appreciate it. And with that, I'll turn it

over to Lee Wright. Thank you. Good morning. Thank you for joining us today. I'm Lee Wright, president of Purchasing Power. Before I begin my overview of the company, I wanted to walk you through, and as a newest member of the Prague team, walk you through both my personal and professional background. On a personal standpoint, I grew up as an Army brat across the country and I certainly know what it's like to live paycheck to paycheck. However, I can assure you my family was much more fortunate than others that I grew up with. Many of my best friends lived in trailer parks and their trailers weren't double wides. And I can tell you I saw firsthand the financial stress that they went through every single day as a family. And I'm proud to be part of Prague that focuses on this underserved consumer. On a professional standpoint, I started my career in investment banking and quickly moved into private equity. Was there for almost two decades and focused on four core industry verticals. Financial services with a focus on the subprime consumer, retail, industrial, and energy. After I left private equity, I went into operations and ran an energy company as CEO and quickly then was recruited into Cons Home Plus, a publicly traded consumer durable retail company with a focus on the subprime consumer. While there, I was both chief financial officer and then ultimately chief operating officer where I had responsibility for both the in-store and online retail segment of the business as well as the credit and collections segment of the business. I left there in early 2021, did some consulting for both retail and financial services companies, and most recently was CEO of the Vitamin Shop before leaving the middle of last year. So as you can see, I have a long background in both retail and financial services. I originally got to know Progressive while I was at Cons Home Plus, because while there I actually brought in Progressive Leasing as our virtual lease-to-own option for our customers, who either didn't qualify for cons in-store financing or simply wanted the flexibility of a lease. So it was there that I saw firsthand the way that progressive leasing treated their customers in a flexible, transparent way, and where I saw the leadership team of Prague. So when the opportunity came up to join Steve and the team at Prague and run Purchasing Power, I was incredibly excited. So with that, let's walk through Purchasing Power, which has a long track record, a powerful moat, and is a highly strategic acquisition for Prague's growth story. You see, Purchasing Power is not just a differentiated business. It's a platform for strong growth, which can scale across a massive, underpenetrated employee market. So there are three key messages I want to leave you with today. The acquisition of Purchasing Power represents an expansion into a very large employee market through a nationwide employer-based network, which provides millions of underserved customers access to needed products and services. Purchasing Power delivers a differentiated payment solution of payroll deduction and allotment, which provides better repayment outcomes and delivers a positive risk profile for the Prague portfolio. You see, we're leveraging integrated data, access, and ecosystem relationships to generate organic growth while serving as a cross-pollination engine across Prague's B2B and B2C channels. Purchasing Power is not just a standalone asset. It truly is a strategic multiplier. So at its core, Purchasing Power is an e-commerce retail purchasing platform built on a modded B2B to C platform. We provide employees with the ability to purchase brand-name products and services and pay over time through payroll deduction. This is a triple win all the way around. It's a financial wellness benefit for employees. It's a no-risk, no-cost offering from employers, and it provides predictable repayment behavior for Prague. Now, purchasing power is primarily distributed through a national network of benefit brokers, in addition to a small but mighty direct sales force. We have over 360 established employer clients, we have seven of the top 30 U.S. employers. We have 48 Fortune 500 companies as partners, and that creates over 7 million eligible employees for us to target. We have approximately 98 percent client revenue retention, which shows the sticky relationships we have in repeat buyer behavior. With the revenue base, it truly serves as a revenue diversifier and a risk mitigator for Prague. So let's walk through how this works. And before I do, I want to talk about Don's quote because I love it. I absolutely love purchasing power because I can shop from home. It's convenient and they take payments directly from my paycheck. So I don't have to worry about making a payment. I've never had a problem with any purchases. You see, this is a set it and forget it option for a consumer. They can make the purchase and then it's just deducted from their paycheck. Purchasing powers payment solution eliminates friction, reduces financial stress, and increases likelihood of repayment. So let's walk through exactly how this works. First, employees register, create the account online or in the app by selecting their employer and pay frequency. There's no credit check or approval process required. Employees do need to meet employer-specific eligibility requirements. From here, they receive a personalized spending limit based on salary, tenure, and other factors. They now have the opportunity to browse more than 100,000 brand-name products. And upon checkout, they see the total cost, payment schedule, delivery estimate, and provide an estimated delivery date. And purchasing power places the order with the vendor, and the vendor ships directly to the consumer. Payments are automatically deducted from paychecks and installments primarily over 12 months. So the employer value proposition, the employee value proposition is incredibly compelling and differentiated. We provide customers with immediate spending power with no credit checks, repayments and transparent fixed installments, and a broad selection of brand name products and services. So within the Prague ecosystem, purchasing power plays a critical role as it reaches a stable employed customer base with strong repayment behavior. Within the ecosystem, purchasing power creates cross-product opportunities and improves risk outcomes and ultimately deepens customer lifetime potential. So I love the illustrative persona here because it shows the different ways that purchasing power as a platform is offered to various employees and members. However, I want to walk you through a real-life example that I think is even more powerful. I was walking onto a United flight one night, and I had my branded quarter zip on that said purchasing power. As I walked on the flight, the flight attendant, she was friendly to normal, she said, ah, I love purchasing power. I said, well, that's fantastic. I'm glad you love us. I don't know why you love us, because I mean, I want United as a partner, but we don't have United as a partner yet. We've got your competitor down the street in Atlanta. That's our partner, but not United yet. And I said, so again, how do you know? She said, well, my mother-in-law actually uses you and she loves you guys. She walked me through how to shop, all that. She says, fantastic. She says, so I went on, I logged on. I said, okay, let me get it. I said, oh, I got denied. And she said, oh. And I said, well, so we talked about the business and it was a great conversation. Anyways, well, I got busy on the plane. I'm doing work. And as I get off, she stops me. And she says, hey, I just want to hand you something. So she hands me a card, got the wings on and everything. And I read it. And I said, wow. I said, thank you. I said, do you mind if I talk about this? She said, absolutely. Please use it. She said, because I really want to be able to use this product. This is a great product. This platform, purchasing platform that Purchasing Power has is amazing. And here's what she said. Mr. Wright, it's a pleasure having you on the flight tonight. Purchasing Power is an amazing program for government employees. My mother-in-law, a New York City school teacher, shared the program with me. I signed up, but unfortunately, I am unable to use it. It would be really nice to extend the program to fellow flight attendants. Thank you for hearing me out. Houston-based, Morgan. that's the kind of power and level of desire that people have to have this program because they know that it helps them it's not the first person i've heard but it's the first person they handed me a card like that which i thought was fantastic so let's talk about how purchasing power is distributed because we do have a unique channel to access the market we do partner with benefit brokers, which are typically a subset of the typical insurance brokerage firms. You'll think Aon, Willis, Mercer. I mean, there are voluntary benefit insurance brokers that just do that solely. And we do have a direct, like I said, a small but mighty direct sales force. But this is a really unique channel for us because it provides us with significant distribution scale. It's a sales amplifier without the fixed cost. And benefit brokers are incentivized to sell this product as well. It's something that really solves a problem for the employers. And it's definitely something new. It's not your standard disability insurance, identity theft protection, pet insurance. And it really does resonate with an underserved segment of the population. And there's true alignment as well with our brokers that are distributing this product. You see, they don't get paid by just bringing a new client that we sign up. They don't get paid when a customer makes an order, a purchase with us. They only get paid as payments are made and deducted from their paycheck. So the alignment is there with us and the brokers, and the alignment is clearly there for the employers as well. Because, again, it creates real value for them. It's no risk, no cost, provides a holistic solution to the stress that many of their employees are facing. So it helps improve employee loyalty. And we truly believe there's significant growth potential in the untapped employee benefits market. So now that you have a better understanding of the business and our go-to-market strategy, let's discuss the near-term industry drivers. There's growing demand for predictable, low-friction payment methods, especially as employees have continued to endure economic pressure. And we're seeing an expansion of voluntary benefit marketplaces, making it easier for employers to adopt new programs. And there's increasing interest from brokers. You see, purchasing power sits at the intersection of payment solutions, financial wellness, and employer benefits. And we believe that convergence is accelerating. So we have four key levers to advance Prague's growth strategy. The top two chevrons over here on the left are levers that purchasing power could have done on its own as a standalone entity. The bottom two chevrons, I'm going to walk through, show you the power of being part of the Prague ecosystem. So the first chevron, look, as I talked about, we have over 7 million eligibles today. But not all eligibles are our target demographic. But if you go back to Steve's slide early, he talked about 40% of the population being credit constrained, underserved. Well, that's fine. Let's take 40% of 7 million. I'm at 2.8 million what I would view as my eligible true target demographic customers. Well, I have less than 300,000 active users today. So I'm at approximately 10% penetration of my target market. I have a massive opportunity through better marketing, making sure I've got the right retail catalog that meets the needs of these employees to grow my revenue without even trying to do the second Chevron. And that's adding new clients. Of course, I want to add new clients. I mean, look, it's and we will continue to work on that. I mean, but because you think about it, I've got seven of the top 30 U.S. employers. That means I don't have 23 of the top 30 U.S. employers. 48 of the Fortune 500. I've got 452 that is still available to me. And we truly believe that Purchasing Power is the only company of our scale and size that can handle these enterprise relationships. So we think this is ours to win. So the third chevron, by being part of the Prague ecosystem, we can leverage shared data to improve decisioning. We can also cross-promote to our existing retail partners. So you heard from these wonderful firms of Signet, Mattress Firm. Look, obviously, we want to make sure we introduce this as a voluntary benefit, and those discussions are underway. And there's other amazing enterprise relationships that Prague already has. We want to make sure that we're offering the voluntary benefit of purchasing power within their companies. And we have other products, clearly. For, Money App. Well, employees of these companies that are already our partners, I guarantee they're already using these other products. So if they're going to use them, why don't they use the Prague products? And how do we cross-promote those? And finally, we truly believe that we can use payroll allotments as a strategic direct-to-consumer lever, which is a whole other broader opportunity here. All of these initiatives compound over time, creating a durable multi-year growth engine for Prague. So let's walk through the key takeaways again. First, purchasing power gives Prague access to a large, attractive employee market. Second, our payroll deduction and allotment payment solution provides Prague with the differentiated lower risk repayment model. And finally, purchasing power is truly a catalyst. It's enabling organic growth, fueling cross-pollination, and deepening our ecosystem advantage. This business is proven, it's defensible, and it's positioned for meaningful, sustainable growth. I hope you can tell how excited we are and that I am about the future of this business, and I look forward to discussing the opportunities ahead. Now I'd like to welcome John Baugh, Vice President of Investor Relations, back up to the stage to kick off the Q&A portion of the presentation. Thank you.

Excuse me. Yeah, Nate and Steve are going to come up, and then if I could have the assistance. Let me walk you through the Q&A process very quickly. So I've got two teammates who have microphones, and they'll be available. So when we're ready for questions, I'd ask you to raise your hand and state your name and your firm's name. And then if we can keep it to one question and a follow-up, we'll try to get more questions in that way. Before, though, we get started, you may have seen early this morning we issued a press release. It relates to purchasing power and revenue recognition. And I'd like to give Steve the opportunity before we start the Q&A to address that press release.

Sure. Thanks, John. So in my previous life, like I said, I was a CFO, and I had an active CPA license for about 20 years, and I found when you start talking about technical accounting, you lose the room pretty quickly, unless it's a very special group. But we did want to talk about it kind of just to get it out of the way. I'll start with the end. There's really no change to the financial results of Prague Goldies or purchasing power, for that matter. Like happens from time to time when you buy a private company, you get in and you start kind of doing your work and checking your boxes. And our teams are the best there is. And so they start papering the file and talking to our auditors. And we discovered on a small portion of the revenue base that when applying 606, which is a revenue recognition policy, we have to basically recognize the revenue at net of certain direct costs as opposed to gross. And so what the press release did this morning, because we knew we were going to be up – this has really been fast moving over the last four, five, six days. But we knew we were going to be up here this morning in front of you. We wanted to get that information out publicly so we could talk freely. And as you saw from the release, there's absolutely no change to purchasing powers adjusted EBITDA or other earnings metrics. There's no change to Prague Holdings earnings metrics or EPS metrics. The change is that we brought the revenue down by $70 million at the low end and the high end of the range for purchasing power and ultimately for the holdings group. As you can imagine, if you bring the revenue down and EBITDA does the same, it kind of increases the expected EBITDA margin of purchasing power. But it's really just a geography lesson on the P&L from taking some cogs and moving it up and netting it out against revenue. Importantly, we said back when we announced the acquisition and on February 18th that we expected purchasing power to have a low double-digit growth rate from a revenue standpoint. And when applying 606 consistently across the periods, that still is true. So, you know, I just wanted to hit on a few of those things that nothing has really changed here except for a little bit of revenue presentation, but the growth opportunities are still as excited about them, and the earnings power is still the same, unchanged.

Thanks for that, Steve. And just to point out again, we've got two Q&A sessions. So in the first one here, if you can limit the questions to the three presentations we've had so far, we'll have plenty of time later to do the financials and address the entire team then. So we're ready for questions. First question here from Bobby.

Sean, good morning, everybody. It's Bobby Griffin from Raymond James. Nate, I guess I wanted to start with you on progressive side. You guys have some impressive retail partners, but, you know, it's been a while since we've seen a new partner of scale sign up. And I'm curious now, as we've gone through the kind of COVID digestion and all this stuff, kind of what do you hear from partners when you're out pitching it, given the success that we've heard about today from two notable retailers? And kind of what do you think the outlook is and the hurdle to get some of these larger ones to the finish line?

Yeah, thanks for the question, Bobby. You know, they're really long sales cycles. I think you heard from both Mattress Firm and Cigna today that there's a, you know, there's an investment that comes with doing lease-to-own. And those sales cycles can be a little bit long. You mentioned COVID. Coming out of COVID, everybody's trying to figure out how to keep the lights on and how to go to market in a new world. And so that maybe delayed some of those sales cycles even a little bit further. We continue to talk to everyone out there about progressive leasing and what leasing can do for their businesses. You haven't seen anybody really adopt it at the large scale. So, you know, we haven't necessarily commented on those specific retailers in the past, and I don't think that's going to change. But we continue to believe there's excitement and opportunity with large and national retailers for leasing.

And I guess to follow up, say that from the large scale, the opportunity, say, it's still a distance out from building. When you look at your small and medium business opportunity today, compare it to peers, you know, or I guess just kind of across the country, what's out there today? Like, how long do you think that runway of door growth is on a small, medium-sized business perspective?

You know, a lot of the small, mediums use Leastone today. I think there is definitely still growth there into the years to come. You know, we had a four-digit number of sign-ups in the small, medium space last year. We expect to continue to accelerate that. Like I mentioned earlier, we're putting firepower, more firepower into that space. So I think there's good growth opportunity there in your traditional, you know, furniture, mattress, retailers, but also in expanding markets as well. I think there's good growth in that S&B space in the future as well.

Yeah, I would just add on that that, you know, the S&B, we talk a lot about S&B, and it's really jockeying for position. It's fairly well mature across the small and medium-sized businesses, and there's multiple providers in there. And we perform well there, but it's jockeying for position and trying to be first up and get the first app. and there's a lot of movement within that space. We're focused on it. Nate's got a good team and a strategy this year, certainly for growth. Where we think we are the clear leader and have the right to win is in the larger retailers, and that doesn't mean the A accounts that everybody talks about that are kind of individually needle-moving, but there's dozens and dozens of really large ones that are not the size of, let's just say, Walmart. and we believe we have a right to win there and we're very referenceable and we have great ambassadors and validators in our existing retail partners. So clearly we want to have pipeline conversion. It's part of our growth strategy. We have given up on predicting the timing of that because we will be always wrong, but it's a big focus of ours.

A question in the middle here from Kyle.

Great, thanks. All right, good. Hey, yeah, Kyle Joseph with Stevens. Thanks for the presentations today. Good to see you again, Lee. I just want to talk about kind of the evolution. You know, Prague has obviously evolved a lot in the last five, ten years. And then we understand what's going on in terms of furniture and mattress demand. But kind of moving over to the supply side, talk about the evolution of kind of the payment waterfall for consumers. at retailers you know historically it was primary secondary tertiary but talk about how that's evolved in the last 10 years with other products and how prog uh competes i can start and nate

nate sees it every day but um yeah i mean we we have uh the traditional finance stack as you referred to is still still the predominant way especially at uh in store that people uh work through the system like it you know Best Buy we've got the my Best Buy card and then there's a flow to progressive we've done a lot better and our technology has helped and we've we've really instituted waterfalls quite nicely and harmonize applications with the primary providers and to the extent a second look exists and then with with least known being tertiary we've we've really improved there and helped funnel dynamics across the across the stack there there's certainly some other providers that are out there and and and have a brand name that that drive traffic and but but our retailers are very keen on making sure that that doesn't divert apps from the traditional flow because they want to make sure that to the extent that there are apps coming in the in a different flow that they still have an opportunity uh the for the declines to be uh offered up a progressive leasing option so those things are evolving and and in fact our partners um are probably our best ally in that to to help make sure that we're getting as many at bats as possible uh great

and then yeah follow up um nate you've obviously been there a long time and kind of thinking back to pre-covid when it was part of aaron's progressive was one of the most kind of predictable companies i covered you know in terms of top line growth and whatnot obviously you know covid's kind of covid really turned things upside down not just for progressive for a lot of things but you know it kind of gives the sense for the outlook you talked a bit about the pull forward of of demand in terms of furniture mattress specifically but you know i'm a finance guy i don't cover those companies but in your discussions with the with retail partners the outlook for for growth you

know, particularly furniture and mattress? Yeah, it's a tough industry when they've had the headwinds that they've had, right? And I think they all certainly expect a tailwind from those replacement cycles to come around and to come around quickly. You've certainly seen some players, you know, really struggle through coming out of COVID and furniture and mattress specifically. But the partners that we have, we're really confident in their ability to execute on those replacement cycles and i think their confidence in us to help make sure that's a a tailwind and a positive for them and us is um is pretty strong we look forward to

that day right we've been fighting we've been fighting only headwinds for the last several years as it relates to demand in certain categories um and having it go to calm winds and then eventually a tailwind will be a welcome uh welcome trend vincent did you have thanks kyle

Vincent, yeah, if you can wait for a mic.

Vincent Cantik, BTIJ. I wanted to focus on purchasing power. So you gave a lot of great statistics for a new business to us. I appreciate that. I wanted to maybe paint a blue sky scenario on the business. So you talked about you have 7 million employees right now that you can access. Of that, 2.8 million is kind of the addressable market. When you think about the total opportunity set, how big can that $2.8 million get to when you think about maybe the U.S. economy? And then what does it take to get to that scale? Like, how does the sales cycle look like? What does it take to eventually capture all of that?

Yeah, no, thank you. Look, the overall opportunity is incredibly exciting. But I think let's just start with our first opportunity, which, as I said, hey, we want to make sure that we're doing a great job penetrating our 2.8 million addressable audience. Now, how do we make sure we do that? At the same time, clearly, we have a sales team that's through our broker network as well as our direct. And it is a longer sales cycle. You do need to make sure that you go in, you're working with the chief people officer, CHRO, total rewards, and they're busy. They have a lot going on. So as much as I believe and I can talk about how important this is for them, they're trying to do so many different things. So, again, they absolutely understand the benefit, but they're trying to balance a lot. So the sales cycle itself does take a little bit of time, and we're consistently working on that. So, I mean, the opportunity is absolutely massive, we believe, for us to do this because it really is an innovative payment solution with our purchasing platform that we can apply. So, I mean, I don't want to blow people's minds here, but it's huge. If we execute well, and it goes back to what Steve said earlier, you've got to execute well. You've got to make sure you're disciplined and continue to focus on that sales cycle and grow. But it is a very, very large opportunity. And, again, I know we're going to walk through the financials later and the projections, but we're very bullish on the growth here at Purchasing Power.

One of the things that we observed about Purchasing Power was its similarities to the leasing business and how it's a B2B2C channel. And we feel like we do a couple things really well here. We assess risk in this below-prime consumer very well, and we service this consumer very well. But we also serve our partners very well as well. And so Nate and his team do a great job on the B2B side at leasing. Technology plays a big role in it, and that's going to be an unlock event, we think, in landing new pipeline opportunities and convincing additional retailers to adopt the product. Same thing is true on purchasing power. We do have a broker network, but we also have a direct sales team, and we're out selling to the chief people officer or the total rewards leader. And we need to work on making it easier to integrate with us because there is some payroll integration to get the census data and the payroll feeds. So those are some of the kind of expertise and the learnings that we can bring to the party in order to help the sales cycle. It is a longer sales cycle. I don't think it's actually longer than leasing, but it's longer than some of the other ones. But I think we can have an influence on that. But the opportunity as far as this 100 million consumers, they're working somewhere. and if we can partner with those employers, it'll be positive for us.

Okay, great. Thank you. And follow-up, actually focusing on the leasing side. So you spoke a little bit about the direct-to-consumer channel, and that's growing. When I look at the landscape, it does seem, and there's not many competitors directly on leasing, but when I look at Buy Now, Pay Later, including with four, direct-to-consumer seems to be growing a lot, and I can look at other Buy Now, Pay Later. Maybe if you could talk about that growth opportunity what's driving that and is there perhaps more to go i know you spoke with some on the top merchants but just going directly to consumer accessing that and driving some of

that business thank you yeah like steve said multiple times and i said as well 100 million consumers how do we how do we help them understand what's available to them and i think you heard from our retail partners today as well their excitement in our platform because it reaches more people and so when you start thinking about our exclusive network of large national retailers as well as affiliates, you can go to any customer that's looking for something that's in a leasable range, a price point, and bring them into that D2C platform and give them the opportunity to shop for what they need. Not just that I have an open to buy at a specific place, but I can use that leasing power everywhere. And so that's really our goal is to try and bring people into that platform and help grow the accessibility of lease to own, whether we have a direct relationship or not, and really build around that customer and what their need is and provide a solution to it. So we think it just helps us reach customers faster, and we think it brings even more customers to our existing national partners that anchor us, but also gives the customer the ability to shop elsewhere if needed, but really builds that brand loyalty. And like I said, an extension of their wallets, really what we're going for.

We haven't talked about For Money App yet, but those products, the velocity of the product is much more quick. So we see them more frequently. They engage with our digital products more often, and it gives us more opportunities to be relevant to them when they do need that $1,500 or $1,200 to $1,500 thing. And Marketplace is a great way to direct them in order to get those things that they need.

Thanks, Vincent. Yeah, Wong?

Thank you. Wong Nguyen from TD Cowan. So maybe a question for Nate and Steve. I want to dig a little bit deeper into your efforts to go after SMB in progressive leasing. So I think historically you have been more focused on enterprise-level merchants, and maybe your competitors were more focused on SMB. So can you talk a little bit about, I guess, the resources that you guys have been investing in going after SMB, and does it involve more boots on the ground, and how should we measure your success in doing so going forward?

Yeah, so going forward, we've added some firepower into that space. We continue to see retailers of all sizes, especially in S&B, looking to us for differentiation. I think our marketplace plays a part in that. Our technology that allows people to work with us faster and more efficiently plays a part into that. And we've seen success where we've invested. And so we obviously want to replicate that success. We have put more boots on the ground, and we've restructured some things to kind of break that business up a little bit differently than we have. maybe in the last five years, but it's a space where we've always played. I mean, being here for 19 years, you know, there were no national partners back then, and then that SMB space is a space that I'm very familiar with and our teams are very familiar with, so we wouldn't be investing in it if we didn't think that there was an opportunity for success, meaningful success, and very confident in the team that we have and the group that we have focused on that segment of the business. It's an important one to us, and again, we want to reach customers where they want to shop, Not any one specific place, but what do they need and where can we help them? So we're excited about the future in that space.

Thank you. And maybe a follow-up for Lee. So on the purchasing power side, I think you guys are one of the most dominant players in the employee benefit program space. So can you talk a little bit about your competitive advantage there? What makes you guys beat out your competitors? and, you know, can you talk about the stickiness of the relationship there with the employers as well?

Thank you. So, first of all, as you said at the end, they are very sticky relationships. Once you are integrated with their payroll system, they understand that, look, anyone can move to someone else, but it's very difficult because they value the relationship. We do a great job. And the employees certainly value what we provide to them, so it is sticky. With regards to the competitive landscape, as I mentioned in my presentation, we do think we have the right to win. We're the largest out there. We certainly have the trust of very large companies. If you think about progressive leasing with fantastic enterprise-level clients, it's very similar in purchasing power. We have the large enterprise companies out there, but we're not just satisfied with that because we think we have the right to win across the board because we think we've got the right scale, the right payment rails, the right expertise to ensure that we can dominate this space. So our plan is to continue to do so. So there are smaller competitors, but they are, again, I would say much smaller. And what we want to make sure we do is keep the gas on, push really hard, don't get complacent. And, again, we think we have a very large opportunity, as we discussed earlier, to continue to grow.

Great. Thank you. Question here.

Hi, David Dacus, Sterling Pine. I'm just trying to understand the commercial synergy side of the purchasing power acquisition. So what's the cross-sell opportunity look like for purchasing power to win business from Prague's retail base? Is that a lever you're pulling on, and is there any color you can give on penetration there already?

Yeah, so again, as I discussed, certainly, look, you heard from a batch from Signet and the relationship they have with progressive leasing being able to come in here. So it's certainly an easy entree. We've already had those discussions. There's other great enterprise relationships, Best Buy, Lowe's. Of course, we want to make sure that we're making those introductions and working on that. So we think it's a unique relationship that we can get that entree. To be honest with you, one of the hardest things to do is have someone that trusts you as a partner and make an introduction elsewhere in the organization. So it's a very, from our standpoint of purchasing power, it's a very valued insight and handoff to be able to go in and talk to people where they already have a trusted partner. So we think that that's a really unique advantage we have on some of those enterprise retail partners already.

I'd just add that our ecosystem is exciting to our partners, and whether it's purchasing power for anything. Where we've built trust and confidence, it's that innovation you heard us talk about earlier. So when we have something new to add, I think our retailers are really good at listening and seeing how it can provide value to them. And I think there's a lot of excitement about the ecosystem in general. And obviously, purchasing power is a big part of that.

Thank you. And just to follow up for Leah, what are some of the reasons – you mentioned seven of the 30 top employers in your book of business. What are some of the reasons that the other 23 aren't currently working with you guys?

Well, look, as I said, it's a huge opportunity, and we've got to make sure that we show them the value proposition as well as making sure that they take the time, because it does take a little bit of time as we've got to bring them on. They've got to integrate the payroll systems, et cetera. So it's making sure that we truly show them the value proposition and win them over and say, hey, this is worth doing that. And, again, we believe once we get in front of them that we can actually prove that it makes sense for them to bring this on as an employee benefit.

Got it. Thank you.

Thanks, David. Yeah, we can hand the microphone to Hal.

Thank you. Hal Gess from B-Riley. I wanted to ask about the pace and cadence in purchasing power when you bring on a new employer. How do revenues ramp over time? I mean, I imagine if you're an employee, this is a novel way of buying things. You've never used it, and then I imagine it builds over a period of years. Could you tell us how it goes, the pace and cadence of adoption?

No, that's exactly right. And as I talked about, one of the things that we view as our most important lever is, hey, we've only got 10% penetration. So how do we continue to build? It's really making sure that we get the awareness. So early when you bring someone on, it's getting the awareness for the employees, to your point, to say, hey, this is a unique way they can purchase. Get that awareness in front of them and grow that base. I will tell you what we have traditionally seen from a ramp perspective is a little over three years, they sort of get to kind of a more of a steady state. It grows pretty quickly in the first three years and gets to a steady state. But, again, as I mentioned, I don't think that steady state is where we want to be. We need to make sure we continue to get awareness and get that penetration even higher amongst our existing eligible base. Because that really is, you know, if you think about the opportunity in front of us in the near term, it's that penetration rate, getting that up. Of course I want new clients, but it takes time to ramp. It's like a layer cake. Yes, the first year is good, and then it grows quickly. But, again, that's further out. In 2026, 2027, how can I increase that penetration? So it's a combination of the two, but it is roughly a three-plus-year ramp.

I guess one follow-up on credit performance in the business. What are the personas of, say, delinquencies or defaults in that space, in that segment of credit?

That's a great question. We just did our ABS offering, as you're aware, so we got a lot of questions from the ABS investors. of, you know, hey, what does cause if you're getting payroll deduction? Well, why does anyone ever not pay? Well, the biggest thing that happens is through termination of the employee, whether it's voluntary or involuntary. So if you have turnover of whatever sort, as I mentioned during the video presentation, we always ask for a backup payment method so that to the extent that we can't use a payroll deduction, that we can hit that to make sure we get it, you know, get paid. but to the extent that then they'll say they've canceled their account or done whatever, there's insufficient funds, well, then we've got to go after them, and then we're in the traditional collections method to do that. So that is the leading reason for why we will have delinquency or defaults.

Thanks, Hal. So I've got time for one more question, and I'm going to sneak one in here from the webcast. It looks like it's directed to you, Lee. I took a quick look ahead. Not a financial question, but a purchasing power question. How much of your sort of three-year CAGR that you talked about in the deck is comprised of landing a new employer partner versus scaling with the existing?

Yeah, that's a good question. Look, the majority of our opportunity really is scaling with our existing eligible base and getting better penetration. Again, as I talked about, it's a layer cake. So we will, and we do have some very exciting new clients in the pipeline we'll be excited to bring on. But, again, it takes time to ramp. So the majority is going to be better penetration, but with really the cherry on top being these new clients.

At this point, we're going to take a quick break, and then we'll reconvene in about 10 or 15 minutes. Thank you.

10 or 15, you need to tell me.

Thank you so much. really excited to kick off the start of the second half of the program with our fastest growing business which is our bnpl business for technologies and we're going to hear from the

president of four technologies john trainer thank you john so hello everyone i'm john trainer president of four technologies i've been with four for about 10 months now and i bring a fresh set eyes to this business. With that fresh perspective, I can't tell you how excited we are for what we're building. Before joining FOUR, I was Chief Technology Officer at Wahoo Fitness, a leading fitness technology brand. And before that, I was Chief Information Officer for 20 years at Aaron's, where I did things like help lead the progressive leasing acquisition and help build out the e-commerce business. And just like Steve, I too have been in the homes of our customers, whether it was delivering appliances in Detroit or working through payment flexibility and farming to New Mexico. So I know these customers and I know who we serve. Over the next few minutes, I'm going to show you why 4 is the most exciting growth opportunity in all of Prague Holdings. We are a rapidly growing, highly profitable, lean organization with a high caliber team, phenomenal technology, and a large market in front of us. So there are going to be three things that I'm going to cover that I want you to leave with. Remember, only three things. We are scaling a proven growth engine. We scaled from our app launch in 2021 to over $736 million in GMV last year alone. And we are just getting started. Additionally, we are profitable and capital efficient, which should be near and dear to everyone's hearts right here. We are not chasing growth at any cost. We will not do that. We have built a business that balances growth with profit improvement. We showed that last year when we went for our first year of positive adjusted EBITDA. Not only that, we went from a year before where we were losing to a 13.5% adjusted EBITDA margin. And third, Ford is uniquely positioned in the buy now, pay later space. We have found the right customer and very importantly, this is easy to miss so pay close attention to it, we have a proven direct-to-consumer model. That is a key differentiator for our product. And then you couple that with the massive market runway that Buy Now, Pay Later has, and there's a phenomenal combo. Let me show you how all this works. So what is 4? 4 is a direct-to-consumer Buy Now, Pay Later platform. We connect seamlessly with almost any retailer, so they're all wide open to us. Customer split purchases into four equal payments over the course of six weeks, about two weeks apart. We are more, though, than just a payment method like some of our competitors. We are a consumer engagement platform. We use intelligent analytics, personalized marketing, and generative AI to drive engagement and retailer brand visibility. This past holiday season alone, we experienced 3 million monthly active users on an app that has 100,000 reviews and a very positive 4.8 rating. That engagement drove over $736 million in GMV, as I just told you. And here's a number that I'm incredibly excited about, and you should be as well. 80% of our GMV comes from our subscribers. These are customers who are paying for the four plus membership to gain access to premium retailers and premium support and other benefits. These are not one-time shoppers. I want to be very clear about that. They are engaged, repeat consumers who see enough value in our service to actively pay for it. That subscriber base is also in part what powers our economics. Our take rate is about 10% of GMV. and that is from a series of a diversified set of revenue items. So we have our subscriber revenue, affiliate revenue, platform revenue, and interchange. That plus what we do with that take rate creates really strong, endurable revenue. So let's talk about now how we make money and how we manage our risk. On a dollar of GMV, we immediately collect 25% of it at the time of the order. The remaining balance, as I mentioned before, is collected over three more payments spaced about two weeks apart. The full amount is collected within six weeks. This means our capital turns over every six weeks. We recycle the same dollar eight to nine times in the course of a year. And here's what makes that powerful from a risk management perspective. I have visibility into our cohorts within 19 days. I have early indicators that allow me to manage my business as early as 19 days. We do not wait months to find out whether or not our underwriting and collections are performing. Instead, we measure that feedback loop in days, not months. Combine that with the diversified revenue model that I talked about in the last slide, this short collection cycle returns strong returns on capital without taking on long duration credit risks. So let's talk about how people find four. Most of our customers are finding us organically. They're searching in app stores on ways to manage their spending. They're looking for alternatives to credit cards, especially our demographic, and four shows up with those 100,000 reviews and that strong 4.8 rating. With targeted marketing activity, we have been as high as number four in Apple's app store in the shopping category, right alongside retailers all of you know. We also go viral in social media. Last year alone on TikTok, when people were posting about how four helps them. We had four videos that organically, I'm going to talk about what we boost, but organically each achieved more than a million views. That is customers telling people what they like about our product and that is people reacting positively to it through views. We complement the organic strength though through retail partnerships and most importantly diversified paid marketing sources across social media. All of this happens at a very disciplined and low cost per app install. So I told you how customers find us. Now let me tell you why they choose us. It is simplicity. Customers love our product and the simplicity that we offer. No credit needed, a decision within seconds, and access to hundreds of retailers. It's simple, it's transparent, and it's in the customer's control. So I suspect most of you here are not my target market. I don't know how many of you have four loaded on your phone, unless you're an employee of Prog Holdings that I may do it. So I'm going to explain to you how the app works, because you may not fully understand how it works. So I'm going to walk through a video and show this to you interactively. So first, you're going to download the app from the App Store, like I described. you bring it down, and then you just simply connect your bank account. When you connect your bank account, we use decisioning, and within seconds, we know what your spending limit is. Then, you go into the app, knowing what your spending limit is, and you pick out a retailer. You go find one of your favorite retailers, and you shop for what you need right then. Once you've shopped, then you have the amount. The amount's very simple, and then you get that total. You split it into four payments, as I mentioned, and then you apply it back to the retailer. Very simple, very easy, and people understand it. Once you've done that, then you manage it within the app so you stay engaged in the app. You can see all your previous transactions with us. And when you are ready, you're able to become a four plus subscriber that unlocks premium merchants and order tracking eventually and other items that are important. So I've talked about that. Let me say a review of what the actual customer is saying about our product because it's vital to know what the customer is saying. They say really helps. When you're on a fixed income and you need extra cash, four really helps. Better than using a credit card, spending thousands of dollars, and paying $25 a month with no end in sight. with four you split into four payments and you're done a quick payoff when you need it most there's a real review from back in december and it captures what a lot of our customers are thinking as i move forward sorry i want to talk to you about not only how four works for our customers but how it helps prog holdings because that's a key piece to what you're investing in four is a vital part of the Prague Holdings ecosystem and a great complement to what you've already heard about. And for many customers, it's the easiest way into our ecosystem. First, we offer a very low friction entry point, as you saw. We use non-FICO underwriting, and that's key to our customers. You simply connect your bank and get a decision within seconds. This lets us say yes to customers that a lot of traditional offerings may not approve. Second, we build a direct to consumer relationship. I mentioned that's a big differentiator. Customers start in our app, they build loyalty in our app, and they continue to grow with four over time. Other buy now, pay later competitors are moving in this direction. We are already there and have been there. As customer needs evolve, though, the Prague ecosystem is there to help them. Let me put a face to this. This is Nicole. Nicole is a real person, but this is not her real picture. She works at a restaurant near our office. I probably see her once every couple weeks. And I've talked to her about our product. She's 23. She works two jobs. She does not like credit cards like a lot of her peers. She just doesn't like them. She doesn't want high-interest credit cards and, frankly, doesn't want credit cards in general. But she can absolutely manage a flexible installment plan, and that's why she likes what 4 offers. Before 4, Nicole maybe was never introduced to the Prague ecosystem. Now she's in, and as her needs evolve, we are there to serve her across the entire ecosystem. them. Let's zoom out and talk about the market opportunity, which is what you probably care about if you're going to invest in this business. The BNPL industry is still in early innings, very early innings, and there are a lot of tailwinds, as you can see if you look at the market. What I want you to understand, however, is not just that those tailwinds exist, but that we have the team to capture those tailwinds. First, consumer comfort with BNPL is increasing. More and more consumers prefer, just like Nicole, splitting payments rather than having credit cards. And BNPL is being embedded in every transaction. Once again, you're probably not my target consumer. But if you think of all of the transactions you've done online, in-apps, et cetera, almost always now there is a buy now, pay later option. That is because it is now table stakes for retailers. Second, agentic AI commerce is emerging. It's maybe not fully there yet, but it is definitely emerging. That is the concept of AI assistance, shopping on your behalf, finding deals and actually completing purchases. And that's where buy now pay later comes in. BNPL is a natural fit for that type of transaction. And four is building the rails to make all of that work and be embedded directly in there. And third, we use AI to personalize that shopping experience. As I mentioned, that direct consumer model is important. This is where our personalization shines. We are developing the ability to properly curate that relationship with that customer and streamline how they discover retailers and purchase from us. This creates the ability for us to expand our monetization opportunity significantly. And here is why I'm confident that we can capture these opportunities. Four has a lean exceptional team that is able to deliver. If you compare our revenue per employee, we outpace our competitors by multiples. And it's because we are an AI-driven cloud-native business that is able to execute. We've been using AI to operationalize our business. And I don't just mean technology. I mean true operationalization of our entire business. And that gives us a strong competitive edge to be able to seize on these is one of the most exciting things I've seen in the last 10 months is how well this team performs and how well they use tools like AI to win. So how do we capture that opportunity? Let me walk you through four strategic priorities. The most obvious one probably to all of you and similar to what Lee was talking about, we need to increase repeat usage to increase our lifetime value for our customers. We have this engagement. Now let's get a higher lifetime value. Over 80% of our GMV comes from our subscribers. We're already demonstrating that we have repeat usage. Now it's time for us to do even more with that. Drive strong lifetime value. We know how it's created. We measure it and we track it. And this goes down to not just making sure that we extract more. We actually decision on every single transaction that the customer does. Why do we do that? We want the customer set up for success with this buy now, pay later transaction every time they do business with us. Priority number two, innovate new product and product features around subscriptions and the product. We have a very loyal user base that is incredibly vocal about what they want. It's why we launched Travel last year with partnerships with Travelocity, Expedia. We listen very closely to our customers. We bake that rapidly into our product. This year, we'll launch Tap to Pay within this year with the four card. We're expecting to release four plus features that include, as I mentioned earlier, order tracking, opt-in credit reporting, loyalty programs, etc. Each of these expands our market and deepens that engagement that we're already seeing. Priority number three, develop scalable marketing capabilities. When I arrived, we were really relying heavily on organic marketing. We have changed that radically. We are already acquiring customers efficiently at scale. As I mentioned, we have a low cost per app install. Now what we're doing is we're focusing on targeting those lowest cost, highest stability customers and using that to promote that lifetime value that I mentioned. We additionally have all of this rich data. We've already been doing this, but drive more and more people into the Prague ecosystem. And then priority four, enhance customer support and communications. customer support great customer support is a true competitive advantage we all know that based upon who we work with we will lead the way in how we handle customer support already i'm happy to say in the past year we dropped resolution time by 78 percent and we are currently doing 73 percent AI driven, touchless resolution of support. Our customers love how quickly problems are solved when they have them. They notice it and it builds that loyalty over time. So when I started, I told you there were three things that I wanted you to leave with. So if you ignored everything else, just leave with these three things because they're vital to the value proposition of four within Prog Holdings. Number one, we are a proven growth engine. This is not hypothetical. We launched the app in 2021. We've been growing steadily. We will continue to grow. And we went from app launch in 2021 to $736 million in GMV last year alone. Second, we are profitable and capital efficient. Our take rate is approximately 10%. Our capital turns over every six weeks, as I mentioned, and we scale without meaningfully scaling our costs, which is vital. We are not chasing growth at any costs. We have built a business that balances growth with meaningful profit improvement. And we just demonstrated that and we plan to do that in the future. And third, four is uniquely positioned. So even if the other two don't get you excited know that we are uniquely positioned in the buy now pay later space we have found the right customer we have a proven direct consumer model and we have a massive market runway ahead of us four is a growth engine for prog holdings and we are just getting started and with that let me turn it back over to lee wright thank you great to be back up in front

of all of you again this morning so when i walked you through my professional background previously What I didn't tell you is that I've actually been a very active investor, as well as intimately involved with the short-term liquidity space. So when Steve offered me the opportunity to lead MoneyApp, I absolutely jumped at the opportunity. I was incredibly excited. And I'm even more excited to share the progress that we're making with MoneyApp, a dynamic growth engine within the Prog portfolio. So as a quick backdrop, MoneyApp was started in 2022 as a new service that arose out of the efforts of PRG Ventures. an entity whose sole purpose is to develop new products and services focused on the core prog customer to see if these new product and services could be built into long-term accretive and viable businesses. And I'm pleased to show you today why we believe that MoneyApp is the first successful company birthed by these efforts. So MoneyApp was built with a simple intention, provide hardworking, budget-constrained consumers with a fast, transparent, responsible way to access short-term liquidity. MoneyApp's becoming a powerful platform within Prague that advances our mission of providing inclusive financial solutions at scale. So let's walk through what we've built, what we're learning, and how we're positioning the business for long-term profitable growth. So the three key messages I want to leave you with today are first, we're scaling a highly dynamic solution that addresses a real and persistent need for short-term liquidity. Second, we believe we've built one of the fastest, most frictionless user experiences available in the market today. Our onboarding, decisioning, and delivery processes are not just competitive. We believe that they are industry-leading. Third, our pricing model is simple, transparent, and economically competitive. No tips, no hidden fees, no complexity, just a clear consumer-aligned structure that builds long-term trust. So these principles form the foundation of MoneyApp and position it as a differentiated, durable asset within the PROG portfolio. This short-term liquidity solution provides assistance to consumers who have steady incomes and bank accounts. However, many of these consumers are underserved and or overcharged by traditional financial institutions. Alternatives for short-term liquidity are often costly, inconvenient, or simply unavailable. Our goal is to deliver a simple, responsible experience that meets an essential need with speed and clarity. In just a short time, we've built a product with meaningful scale while still being early in its long-term potential. And you can see the traction. Even though we formed in 2022, we really didn't launch the platform until less than two years ago. And in this short time frame, we have over 2 million signups, over 280,000 transacting customers. We delivered over one and a half million cash advances. We have over 350,000 monthly active users. And in 2025, we delivered almost $13 million in revenue. Our value proposition is rooted in speed, simplicity, and responsible decisioning. All decisions are made and powered by AI cash flow underwriting models, not traditional credit scores. The flow is intuitive and easy. I'm going to walk you through the video in a second, but I do want to point out, if you look to the right of the screen, the customer, if they're ultimately approved, does have a choice in how they want to get their money delivered to them. If they need it quickly and they can get as little as eight seconds, they will pay an express fee. To the extent that they can wait for a standard delivery of two to three business days, it's free to that consumer. so let's walk through how this works so the consumer will download the app and they'll enter in their personal information from there they're going to connect with their bank account as well as providing a debit card they will also then indicate what their date of their next direct deposit and the amount that they're going to receive then they'll then we will verify their account and make a decision on whether they're approved or not for a cash advance then the consumer, if they're approved, ultimately chooses the cash advance amount. They may qualify for up to $250. And then again, they make the choice whether they want to express delivery, which has a fee, or standard two to three business days for free. Once they make that choice, the money's delivered, and they've got the money in their account. The flow is simple, intuitive, and easy. So the consumer need here is real and urgent. Millions of Americans need flexible cash solutions for essential expenses, rent, medical bills, car repairs, and other unplanned life events. This simply happens to this consumer. So let's walk through Joan, an illustrative persona, but a very real person with very real things that happen in life for people. She's a 28-year-old personal assistant. She's done everything right. She's got a good job. she's got a budget that she sticks to she's got insurance but what she didn't expect when she woke up that morning was a searing toothache well she goes to the dentist and says absolutely well we also need fifty dollars for your co-pay okay well that was not in her budget she's got a decision to make she could overdraw on her bank account for approximately thirty five dollars or she could do a cash advance with MoneyApp for much less than that. The choice is pretty simple. And if you think about it within the overall Prague ecosystem, we've got a single customer that's going to have multiple financial needs that can be met with either progressive leasing, for, purchasing power, and now MoneyApp. So we're building a more complete, inclusive financial ecosystem that provides the customer with multiple solutions depending upon their needs and situation. We're operating in a large, highly fragmented market with significant white space. And there's a tremendous need for this product by a large number of consumers. And why is that? Well, again, let's look over here on the left. 67% of American consumers say they live paycheck to paycheck. 37% of Americans can't afford an unexpected expense over $400. And there's over 100 million low-income and financially constrained Americans. So modern cash advance products are rapidly displacing store-based liquidity providers due to better user experiences and lower costs and are increasingly capturing additional volume from bank overdraft fees due to the lower cost, depending on the circumstance. And all of this is possible due to the use of digital decisioning, rapid funding capabilities, and app-based engagement, which provides us multiple levers to capture market share. So our growth strategy is clear and actionable. We're clearly focused on expanding the total number of active users through paid marketing and ecosystem cross-promotion, as we've talked about so much today. We also want to increase responsible repeat usage to drive higher customer lifetime value. I'm pleased to talk about two new features we recently introduced. The first is an extension. So think about Joan. So she took out the $50 cash advance, but her next paycheck is really already budgeted, fully budgeted. She's got her rents due, her car payments due. It doesn't work in my budget. She can simply apply for an extension to repay that amount in her next pay cycle. We've also launched a feature called Top Ups. So again, you think about Joan. Well, okay, great. She took the $50 out. She made her co-payment. But what she didn't realize was that she was going to get prescribed antibiotics. Well, now she had another copayment when she went to the pharmacy to buy that. Okay, well, now we're going to do that. Well, if she's pre-approved for a top up, she can get more on that. So we're seeing that lifetime responsible usage happening here. What else do we have? We're offering graduation products on an affiliate basis. So again, you think about Joan. Hey, she went to college, but she's got multiple student loans. She might want to consolidate those. That's not what we do. But on an affiliate basis, we can make a referral and get revenue from that. And finally, we're exploring data monetization opportunities to scale here within the overall ecosystem. So all of these strategic priorities reinforce our commitment to building a profitable, durable, multi-year growth engine for Prague. So let me close with three key takeaways. First, we're scaling a dynamic solution to provide short-term liquidity for budget-constrained consumers. Second, we're delivering one of the most fastest, most frictionless consumer experiences. And third, our transparent, no tipping, no surprise fee model is resonating with consumers and strengthening long-term trust. So let me close with this. Money app is not just a product. It's a platform, one that's unlocking new growth for Prague, creating meaningful customer impact and giving us a differentiated advantage in a multibillion-dollar market. So, with that, I'd like to welcome Sridhar Nalani, Chief Technology Officer of Prague, up to this stage. Thank you for your time.

Hi, everybody. I'm Sridhar Nalani, the Chief Technology Officer here at Prague Holdings. Let's bring in some energy. Who doesn't love tech, right? A bit about myself. Before joining Prague, I led many large-scale digital transformations as a CIO, CTO, head of technology in retail and financial services. Some of the companies you might know, Macy's, Charlotte Trues, Gap and Old Navy, Backcountry. I was at Microsoft early on, got to see what scale truly is. Among all these companies, there's one pattern that stuck with me, which was a big deal. When you unify technology around the customer, everything accelerates. Speed, scale, stability, customer trust. And you heard from Steve and all the business leaders today, we're applying the same principles here. Same thing. We're building a unified digital and data ecosystem that powers every team, every product, every customer experience across prog leasing, for money app, and now purchasing power. Our mission is simple. And these are five words I live by, still do, for the customer. Remove friction, deliver great experiences. You do this, everything else will work itself out. That's it. I'm going to walk you through today how our technology and product roadmap is enabling all this growth. Before we dive in, I want to frame up what today is about. Everything Steve and all the business leaders are trying to do for our customers, technology is the driver. And I will say this, we're not a technology company, but we are driving everything that's happening at Prague. Four things which are of importance, the ecosystem that you heard about today. First thing, we're building a platform that's stable, scalable, and built for the long term. We have to solve this before we get to speed to market and many other things. That's the most critical component. We're improving experiences for our customers and our retail partners by designing and building our products together and not in silos. We're learning from our portfolio. When one product gets smarter, we're opening it up to the ecosystem. So all the products benefit. It's the compounding effect, and we'll get into it in a little bit. And finally, we're truly now operating on a modern tech foundation. How some of the game-changing companies are driving modern commerce today. We're there. One theme among all four, build once, validate, and extend into the ecosystem. Before we get into the strategy and some of the proof points, and I want you to keep an eye on the pace of transformation that's going on in tech at Prague, I want to take you back just a few years, where tech was, what we were doing. When I arrived here at Prague in 2023, February of 2023, the landscape looked quite different. In fact, I would say dramatically different. 17 different tech stacks, multiple customer applications, long delivery times, lots of friction. But you'd see this in many high-growth companies in different phases of their journey. I've been there. I've seen this enough times. The key is this, though. what you do as a setup in those times is what sets you up for the growth ahead. And we did exactly that here. We invested a ton. We built a high-performing tech team of whom I'm extremely proud of. I mean, everything you'll see today, it's because of them. And we got to work. So what transformed? What changed? We're on one unified stack now on leasing, our biggest engine, our driver. One code base, we're operating as a true SaaS platform, and we're pulling in all the other pieces as appropriate. An improved customer experience that connects the dots for all the products we talk about. Enterprise platforms, powering CX and the backend. Most of the critical apps are on cloud now, AWS, eliminating the tech debt and enabling the growth. A global operating model which scales up with the business. Smarter buy versus build decisions. This is where you get to speed to market the fastest. There's many other things. Why is this important? Because the heavy lifting is kind of done. Now we're set up for serious growth. Let's look at one key proof point. Stability. As I was saying, you've got to solve that so you can go fast without compromising things. As many of you know, holidays are when volumes go through the roof. It was the same case for us last year. Last Black Friday, we saw volumes spiked up 5x. We were able to scale our infra 5x and we're ready for more. Zero issues. That day and the rest of the holiday. See, this is what our customers feel. The smoother journeys, the reliability. and now we're investing a ton into AI and bringing in smarter and more intuitive kind of journeys. So how is this driving our strategy? Quickly going to go over three pillars. The first thing, we want to extend our digital and data capabilities across the ecosystem. We can do that now because everything is set up on the same enterprise-grade building blocks, right? The platforms powering everything. Laser-focused and customer conversion. There's many things we're doing here today, but two key areas of importance, universal decisioning, and we'll talk about it in a second, and a unified data layer. These are the two big ones. And we can go with speed and flexibility with AI now because everything is API first. It's autoscale. I'm throwing some tech terms at you, but test it on peak load that we just talked about. Let's get into it. Let's talk about our first pillar. This is an important one. Our strategy is this. Connect to all the products with the same foundations underneath. Data, decisioning, personalization at scale that Steve talked about, delivery capabilities, AI workflows, all the same thing. And this is not theoretical or some visionary thing. A lot of pieces are already in place. Take the customer data platform, CDP. It's already powering leasing and for those experiences. Capabilities in leasing, we're extending now to the rest of the ecosystem, like decisioning, AI workflows. And that is what we call the flywheel effect, right? tested in, let's say, leasing or another product. When Steve talked about the customer can come through any product now. So one product gets smarter, as I mentioned earlier, with opening it up, and all of the portfolio gets lifted. That's a big deal. And now the customers are seeing all of this directly with the capabilities, both our retail partners as well, reaching them faster. So let's look at what the customers are feeling and seeing in terms of these capabilities. The truth is this. The bar has raised, especially for younger shoppers. I'm sure there are many parents in the room. You know it. Gen Z is not going through a manual application anymore. I see some faces. Yeah. And sitting through a clunky workflow application, that's not happening. What's expected is something as straightforward as downloading an app, setting up a profile. That's what everybody's expecting in terms of experience. Simple and intuitive. Anything other than that is what's friction. When I spent decades in retail, this is how you look at it. Any block is friction. And at Prague, our laser focus is to remove all of that. I've listed a few here. Personalization, we are personalizing the cart, eliminates the uncertainty. Universal decisioning. We can now match the right product for what the customer is looking for in the fastest and the more accurate way. AI checkout assistant. It unblocks anybody on the path to purchase funnel before they get stuck. And raise your hand if any of you are looking forward to calling a support line. So we're putting the power of a mature chat bot through our app on the phone for our customers to solve many things themselves. So this is on the experience side. That's great. But we've got to convert our customers now, right? So let's get into our second pillar on how we're doing that. Decisioning. We're doing that today by increasing the access and reducing complexity. You heard from Nate a little while earlier, complexity kills conversion. It's simplicity. That's got to be the driver. So we're doing that, and leasing decisioning is a very mature product. battle-tested across millions of applications already. Now we're extending that to for-money app and for the right use cases for purchasing power. It used to be multiple onboarding flows possibly giving conflicting outcomes earlier. Now we assess once, and we're using that intelligence across the ecosystem. Again, when you remove these friction points, Customers convert, and we're seeing that. I want to get to another example, and this is a big one. Extending our D2C to Prague marketplace. You heard from Lisa a little while earlier, our retailer partner from Cignat, how this is making a difference. This, by far, is one of our biggest competitive advantages. We started with leasing. and the complexity and scale of leasing kind of gave us a lot of insights on where customers were dropping off and what our retail partners were looking for. And tons of effort went into this area, last year especially. A lot of A-B testing, multivariate experience spirits when we didn't see something working out. But we got to see some good things. See the results. As of December 2025, plus 23% uplift in the funnel. Anybody in retail, you would know this is such a big deal, and we're just getting started there. But this is the key. Marketing on leasing was not our only strategy. This literally, the way we're looking at it, is going to be the multi-product digital front door to all of our ecosystem. And we're scaling it up. Now, let's look at one more example, how this is all coming together, the modernization, the experience, and then getting to conversion. Lease modernization. I mean, leasing is the heart of one of our core engines, but leasing is very complex. And for years, we pushed that complexity to all of our retailers. And this was the state where our retail partners had to figure out what products were leasable and which were non-leasable. And manage all of this through exceptions over thousands of SKUs. We also pushed the same complexity to our customers. And they would see some non-leasables in their cart at the very end of checkout. This is friction. And we had to transform this. And we did. There's some more work left on the lease platform, but look at the results already. It's one million plus lease eligibility evaluations per day on the platform already. Item blocking accuracy went through the roof significantly. 90% reduction in non-leaseables making it to signing now. You remove the friction, customers convert, and they're doing it now. It is precisely at this point of my presentation, it would look suspicious if I don't talk about AI. But AI is not a headline at Prague. It's not experimental. I'm not going to go through all of the numbers here, but look at the first column. Way faster decisions, more accurate. That plus 23% number, again, a big deal and it's growing by the day. Higher returns in marketing, lower cost per acquisition lead. Operations, I want to highlight something here, 75K plus transactional chats per month. This is the line you cared about, the last one. Less than 9% making it to a live agent. That means our agent is now able to help our customer who is truly in need of human help. AI is delivering today, not someday, for sure. So where are we taking all of this? From isolated projects, pilots and projects, we're moving to full-on AI workflow integration into all the products. We're empowering 600-plus knowledge workers with secure AI tools, co-pilot, chat GPT, cloud, Figma connectors, many more. It's a full no-code automation drive going on in tech. And we're scaling up our AI center of excellence, which is what is driving all of this strategy under the Prague Market Labs. We truly want to make each of our employees a super employee. That's the drive. And we do talk about things this way. I know everything is going at light speed. You're all looking at all sorts of streams, But we've got to keep up with this light speed pace. And we do talk about things this way internally. It's not who can do this, but which agent should do this. I know it was a compressed thing in a brief time, but I'll say this. I've been through many transformations and some really impactful ones. But this one is special because of the purpose, the team. and, as Steve mentioned, our ambition and intensity. It's coming together. We're set up for serious growth. But when you step back, even for the brief time we talked about things here, the story is straightforward. What we built is a modern, unified platform. There's more work here, of course, but that which compounds every time we build. The platform, the data, the decisioning, personalization, AI workflows, all of these are not separate efforts at Prague. They're one system working across the ecosystem, removing those friction points and delivering those great experiences. Behind the scenes, it is getting very powerful. For the customer, it's getting simpler. You see, that's the advantage of building an ecosystem, not a collection of products. It gives us speed, it gives us optionality, and it lets us grow with far less incremental cost. I'm going to hand it over now to our CFO, Brian Garner. Thank you for your time.

Good morning, everyone. It's great to be with you. And it's good to see so many familiar faces as you came on in. I appreciate the continued interest in the story. My name is Brian Garner. I'm the company's chief financial officer. I started my career in public accounting with Ernst & Young in the Bay Area and served technology clients primarily. Had the opportunity in 2012 to come back to my home state of Utah and join an organization in progressive leasing that was just getting started on tackling the growth opportunity in front of it. As we sit here today, just completing out 2025, a $2.5 billion top line, served over 10 million customers, delivered consistent margins over the years, and effectively managed its balance sheet risk. There's much that I'm proud of to be part of the team and the delivery that's occurred over the years. You've heard from others today, and I share the view wholeheartedly, that the company has significant growth opportunities in front of it. In fact, I would say it's never been greater as we sit here today, particularly with the acquisition of four and purchasing power and the momentum that we're seeing there. So what I'd like to do is just spend a few minutes and walk you through how we're digesting the financial drivers and how we're thinking about this opportunity and boil it down into our long-term outlook, which I trust no one has looked at in this room, all you numbers people. I know this will be the first time you're seeing it, but I'm happy to walk through. Nope, there we go. Starting at the top, as you're going to clock a few years on this business, we've really evolved from a single-threaded, least-owned construct. And now with the acquisition of Purchasing Power in Four, we're much better positioned to serve our customer across a broad array of products, services, and ticket sizes. The second thing I'm going to hit on today is we understand that managing our portfolio of risk in this industry is job number one. And I'm extremely proud of our track record in delivering consistent yields. Next, Steve mentioned, and I'll highlight as well, we're just getting started on the ecosystem, the realization of the synergies that exist between the businesses. While we've had some early results that are encouraging, the best is yet to come. Fourth, we're well-suited to drive margin expansion. And the most direct line of sight we have to driving margin expansion is through scale. And you see that across our businesses. Hopefully, you've had a chance to look at our 2026 guidance. And you'll see in the long-term outlook, we expect scale along the way. And in tandem with that, we understand the expectations around disciplined cost management along the way and the consistent yields that we've had and margins we've had on the progressive leasing side, I think, demonstrate our ability to control that and to focus on it. And finally, we have some very cash-generative products that have a very quick conversion cycle that gives us free cash flow and our ability to take that free cash flow and explore opportunities across our capital allocation priorities. It provides us optionality and flexibility to move forward. So as you think about the last few years, and it's tough without bringing up too many tough memories, You go back to our spin, and you think about the operating environment that we've been operating in. And admittedly, it's been challenging. The early days of COVID, the demand destruction that occurred, gave way to $6 trillion in stimulus. And for our customer, what that meant was they got $6 trillion, they got their stimulus checks, they went and acquired the furniture, mattress, or TV, laptop that they needed. It created a multi-year pull forward of demand. And now as we're looking at the current economy and the K-shaped recovery that is playing out, our consumer continues to be pressured. And many are asking, we talked about earlier about the replacement cycle. When's that going to come back around? When's that going to turn into a tailwind? That's a very difficult shot to call. And I highlight those challenges not as a crutch or to focus on the negative, but I want to contrast some of the highly value-add actions that this management team and this company has taken against that backdrop. Since our split, we've acquired over 40% of our shares outstanding at prices that we view as opportunistic and below our intrinsic value. We've acquired foreign purchasing power, adding fuel to the growth trajectory and diversifying our platform. We've managed our portfolio and our decisioning posture effectively and delivered consistent yields. We've restructured our costs, focusing more on high ROI initiatives and less on the routine, removing inefficiencies from the processes. And finally, we've freed up underperforming capital with the sale of our Vive segment and redeployed that capital into purchasing power, which has a much stronger growth trajectory and value-add proposition. So what we have now is a stronger foundation, a more diversified base, and the team and platform capable of delivering significant results. Just a quick snapshot of our 2025 results, $2.5 billion in GMV, just shy of that in revenue. Call it $270 in adjusted EBITDA and over $200 million in free cash flow. note that free cash flow number is after the capital that has been deployed to four to grow that business you see the revenue headwinds but along the way we have driven margin expansion from from the depths of the post-covid recovery and also increased adjusted EBITDA by approximately 50 so so I want to I want to make sure that landed and let me re-emphasize this point In one of the most challenging operating environments of the last 100 years, this company and this management team delivered a 160 basis point increase in EBITDA margins and over a 50% increase in adjusted EBITDA. The actions we took around share repurchases, cost management, and portfolio management helped turn the depths of the post-COVID recovery into something that we're proud of. Although there's work to do on the top line, admittedly. Our long-term growth algorithm is fairly straightforward. We're focused on growing the business on the top line while achieving margin expansion along the way, and that's what's incorporated in the long-term outlook. I mentioned the highly cash-generative businesses. We talk about progressive leasing as being a short cash conversion cycle as we've come up along the way, and a typical lease will stick around for six months. now you've got with money app and four you've got that in spades and much quicker conversion and so now the challenge then becomes as you as you manage the p&l and you you manage margins what do you do with that cash and where does it go gives us opportunity to deliver the balance sheet from most recent acquisition gives us the ability to invest in the business gives us the ability in a pretty near term to reevaluate share repurchases, and we've got a dividend that we just increased. So, our aim here is to compound value for shareholders over time consistently, efficiently, and profitably. So, let's break the revenue opportunity down just a bit further, and some of this is just re-emphasizing what you've heard already today. At Progressive Leasing, we're going to look to achieve growth across all logos of all sizes, both within our current partnerships, as well as the nurturing of our pipeline opportunities. And there's plenty of greenfield that remains. We expect the ecosystem to be fueled by synergies with our cross-sell opportunities and enhancements in our technological capabilities. At four, purchasing power and money app, we're just getting started on the growth opportunities that exist. And as you've heard from the other leaders today, we are in the early stages of development with high growth potential as we leverage core strengths. Expanding a bit on cross-sell opportunity, and this is a repeat of the slide that Steve showed, but I think it's important to the financial picture and how we're sizing up the optimal cross-sell motion. Progressive Leasing posted $45 million of GMV from a simplistic, unidirectional cross-sell motion, taking MoneyApp and four customers and matching up against the leasing opportunity. And as you look forward, that really represents the floor, is the more omnidirectional strategy takes hold, and there's data sharing and cross-functional selling across the platform. But even as we scale revenue and diversify the business, we remain grounded in the discipline around portfolio performance across every product. As I've mentioned, since 2012, the decision sciences team is what we call it internally. It's a group of folks, highly intelligent individuals, that we have leaned on to help us develop an algorithm that gives insight into this customer, early indicators of stress, and also chart a path forward to as we need to make adjustments with macro shifts, how do we keep the portfolio on the rails? And what we have today, and I'm proud of what we have, is a best-in-class offering that has insights that nobody has, nobody else has, and our ability to take that and scale it across the rest of the ecosystem is very powerful. And just to back up their performance, because I think it's worth noting, in 2016, we gave guardrails around our portfolio of 68%. As we've talked to many of you and other investors on the road, the conversations around, okay, you're serving the subprime consumer. How do we get comfortable that this story isn't going to end well for us, and we're going to end up holding a portfolio that's deteriorating. And so in 2016, we gave those guardrails. Not a single time on a trailing 12-month basis, through all the ups and downs of COVID, through all the craziness that we've all lived through, not a single time have we been above that 8% mark. And that hasn't happened with the hands off the wheel. We've been actively managing, meeting often, leveraging those core strengths to make that happen so i just want to i just want to iterate this point again through all the twists and turns the last few years and continued pressure on subprime consumer we have an unblemished record of delivering portfolio performance within our stated guard rails not a single miss we have the best in class expertise and consumer insight to navigate choppy waters and we're well suited to leverage these capabilities to purchasing power and for so let's turn to cost. And our view on cost is really two-pronged. And I think it's played out over the years. But it's really to, we understand the mandate of minimizing waste, being as efficient as possible. We often get asked the question, well, okay, that's great. Get rid of cost and let's watch margins increase significantly. And that very well, if you want to run the business That way, you could drive even better margin expansion than what we're painting in the long-term outlook. But we believe our best years are still in front of us, and we need to invest ahead of that growth. And so what you're observing within SG&A is a shift out of some of the more routine functions into technology, into sales, into marketing, that we know we have high confidence is going to drive positive ROI going forward. we have our hands firmly on the wheel we understand the mandate and will align costs in the context of revenue trajectory so taking a quick look at the balance sheet as we wrapped up the year 600 million in in total debt 308 million in cash one one note about the debt that i think is is worth making that was the result of a levered recap that we did in 2021 that was not incurred as a result of any internal cash needs. In fact, this business, as constituted historically, has generated more cash than it needed along the way, and so there was no need to lean on the leverage front. $658 million in total liquidity, and that liquidity position puts us in the driver's seat to capitalize on opportunities and to weather choppy waters. Cash generation is a staple of the business historically, and we expect to continue going forward. And we'll look to deploy that capital in a manner that maximizes shareholder value. Just one key item that I would note as you look at historical leverage, post-acquisition, which was on January 2nd of this year of purchasing power, that leverage ratio bumped up to two and a half times. You may have heard me say on the last earnings call that by the end of 2026 we will be under that two terms target the one and a half two terms target so that gives you some insight into here we've made the largest acquisition in our history and we're able to quickly delever with organic internal cash flows to bring our leverage target down within one and a half to two times which then gives us optionality across the capital allocation spectrum. Speaking of which, just historical versus the go forward on capital allocation, we emphasize delevering in the immediate term, as we've mentioned. And you see our historical focus on share repurchases, which after internal investments has really been where we've channeled the dollars. We instituted a dividend a couple years back, and we increased that by a penny here this last quarter. And so that continues to be a lever that we use to return value to shareholders. So I'm not going to rehash much of what Steve has shared on Outlook, but this remains unchanged with the exception of the accounting requirements around revenue recognition for purchasing power, which is really just a net presentation of their revenue on a small proportion of their revenue rather than the gross presentation that was in the original Outlook. So no change to the prospect or the value proposition of this business, in our view, since the acquisition. Our guidance calls for revenue between $3 billion and $3.1 billion, adjusted EBITDA between $3.20 and $350 million, and non-GAAP EPS between $4.45. It assumes margin expansion across every one of our products. improvement in eps is coming from organic growth as well as the addition of purchasing power which we expect to be accretive here in 2026 we expect a challenging but stable macro environment consistent decisioning posture and continued execution against our strategic priorities we are not baking in additional share repurchases in this view we're excited to execute against this plan and we have the right team to do it. So stepping to the long-term targets, and this is the first time this business has put out long-term targets. This outlook, as you look at it on a consolidated basis, and I'll share the consolidated view here shortly, but it calls for a significant inflection in GMV growth fueled by impressive momentum of four, purchasing power, and money app while Progressive Leasing continues to expand its best-in-class offering within the virtual leased-owned space. Progressive Leasing is expected to grow mid-single digits for GMV and adjusted EBITDA against an already large, approximately $2 billion installed base. We aim to accomplish this through increased penetration within our existing business, as well as the continued pursuit of pipeline opportunities. What I will say about this mid-single-digit outlook for progressive leasing, this does not incorporate an enterprise win. So this is middle of the fairway for us in terms of the opportunity that exists. As Nate said, these are long sales cycles on the enterprise side. They're difficult, and that's a hard shot to call and get the timing right on it. So we are excluding that from this guidance, and when that comes, we will keep you posted. Four, as you see, there are 50% to 60% growth in revenue, and that represents a deceleration from where they're at today. That's more of a lot of big numbers coming into play. And the adjusted EBITDA margin expansion, I think, is a huge opportunity for Four. As you look at other pure play for providers that are public, and there's really only one, you can start to get an appreciation for what the margin profile can be. And what we have done in this business from an economic standpoint, like John said, we have not grown at all costs at four. We've tried to take an approach of let's prove out the economic model, let's get the decision right, and then let's scale. and as we scale let's keep costs under control and the shift right now as you look at the composition of the four customer it skews very heavily towards new customers customers that we haven't seen before you look at more mature players they skew very heavily towards existing and as that composition shifts from new to existing your margins become much much better along the way. And so we think we're in the early endings of margin achievement with roughly 13.5% therefore. And then the purchasing power, low double digits on the revenue growth rate and significant, I think, improvement from a synergy perspective. So 25 to 35% on the adjusted EBITDA CAGR for purchasing power. So just taking a look at the consolidated view and and how it rolls up and you'll hear us talk more about this consolidated gmv concept as we move forward we we have historically just talked about gmv really in the context of progressive leasing but it makes more sense now with this ecosystem to to talk about a consolidated gmv 20 to 25 percent on an already two billion dollar base and growing um and growing a revenue adjusted EBITDA and adjusted EBS along the way. The point that I would make, and again, I'm trying to steer away from accounting lessons here, but I think in this instance, it makes sense to point this out. Not all GMV converts to revenue at the same ratio. As John talked about, four converts a dollar GMV to roughly 10 cents of revenue. Adjusted EBITDA and EPS track more closely with consolidated revenue or start consolidated gmv but that dynamic is four is expanding becoming a larger a proportion of our business you're going to see more and more separation between the consolidated gmv number and the revenue picture so i hope this presentation was helpful um and just to kind of recap the things that are driving or the other areas that are driving the financial picture on a go-forward basis. We're delivering a consistent, diversified revenue picture over the next three years. We've got more opportunity than ever before, and as you size that opportunity, whether it's in four, leasing, money app, or purchasing power, there's more greenfield than there's ever been. Second, we're going to deploy the same mentality and the same discipline that we have had around credit all along the way. We are not going to let our portfolios slip from the rails, and hopefully our track record in doing that from an investor perspective gives some credibility to our ability to manage it and keep it at acceptable yields. Third, we've got a direct line of sight to margin expansion, and it's strongest at four, but we're going to maintain discipline across the rest of the business. And I think with purchasing power, we're able to leverage some cost synergies that we're looking to deploy. We're going to generate free cash flow like we always have. And that's not going to change, which gives us optionality against our capital allocation strategy, which focuses on deleverage in the near term and allocation to internal investment, as well as driving capital to shareholders along the way. What we've got is a business model that's resilient, scalable, and designed to create long-term value. So I appreciate your time, and I'm going to hand the meeting back over to Steve to close out the day.

We're almost done, I promise. I'm going to back up because this slide is pretty impactful, right? We've never done three-year targets before. I just noticed something, so I want to just perfect the record here. It's actually 26 to 28 growth rates, not 25 to 28. It's a three-year CAGR. And importantly, this footnote at the bottom, these CAGRs include purchasing power in the base year. If we were to just take credit for the inorganic growth of buying purchasing power, these CAGRs would be much higher. So this includes purchasing power in the base year, and these are the CAGRs that we expect to be able to achieve. And, you know, as Brian said, the consolidated GMV is a nice picture that translates into aggressive EBITDA growth and adjusted EPS growth. So, yeah, well, we've been through, you know, we've done a lot here today. So thanks for sticking with us. We've talked about our evolution beyond a leasing-centric business, our growth across the ecosystem that we've observed and will achieve, and those three-year CAGRs that reflect our confidence in the strategy. At the foundation of it all is a business that is structurally stronger. Sridhar talked about our technology modernization. It's resulting in meaningful cost efficiencies. Our lease modernization and flexible lease engine are resulting in better customer experience and improved operational efficiencies. We're seeing growth across the ecosystem itself with multiple products and multiple expanding relationships across the customer base. What once was primarily a leasing-driven business is now an omni-channel engagement across the platform. So we've done all this with a – or we are in a position with a deeply embedded distribution channel that's moded, right? We've talked about our exclusive retail contracts. Both Lisa and Jody had to leave for the airport, but I think that tells you the depth of our relationships on the leasing side, that they would take time out of their busy schedules to travel to New York and get down here to the NYSE in order to help us tell our story. And we had a host of other retail partners that would have been willing to do it if they were unavailable. And we have these contracts locked up into the 2030s. So 70% of our GMV into the 2030s on the leasing side. I know there's some questions sometimes about the concentration risk, but those retailers that are in our top five that represent that GMV are public. And you guys can look at their public financials and see whether there's any financial strain out there. We obviously had a fairly high-profile bankruptcy last year, but the rest of the stable of partners looks very good. Lee talked about the large employer access and 7 million eligibles, 48 of the Fortune 500. But there's a lot to go get, right? And we're excited about that. And then the direct-to-consumer channels, and we're kind of using that generally as a concept of both the Prague marketplace and our four technologies business, is really taking off. So we're a multi-product business with improving economics, expanding reach, and a clear path to long-term value creation. So we truly believe that Prague's best growth story lies in front of us. So we thank you guys for your time today, and we are going to go into our final Q&A session.

Okay. While the presenting team assembles up front, we'll go through the same process as the first Q&A session, where you'll raise your hand, and we'll get a microphone in front of you. I think I saw Bobby.

Just first, thanks for everybody for the time putting this together. I guess, Steve, I want to actually circle back. I think it was early in your start of this day, you talked about, I think, the data opportunity or data sharing opportunity across products. And I'm just curious kind of where that is today, what's embedded in that algo to make it successful. And then is that an opportunity on basically a GMV unlock, or is that an opportunity on better loss ratios or both?

Yeah, I mean, that's yes to both of those. It's really a big opportunity. And where we are, so we've got kind of a harmonized data lake with the data together, and we're able to make multi-decisions with an application. We're not actually, like, currently serving. Like, if somebody applies through one front door, we're not, like, serving an offer across all products to them currently, but certainly that's on the roadmap. But the opportunity is absolutely both offense and defense. It's on the GMV front. It's on the ability to have visibility into what they're consuming, other products that we have. Like Lee brought up, we know that leasing customers are using BMPL, and we'd rather them use four. We know that BMPL customers are using CAS Advance, and we'd rather them use MoneyApp. So we're looking to drive growth and originations with our shared data infrastructure. But clearly it's a loss mitigator as well because we can continue to build and enhance our proprietary data set and kind of observations around payment behavior to make sure that we're making good decisions and, you know, hopefully say yes to people that might be more incrementally yes because we have better data.

And then, Brian, just a quick follow-up on the financial algo. I think you mentioned share repurchases are not in 2026 guidance. Are they in the three-year ALGO for EPS guidance or not?

They are not in the three-year ALGO. And so we've never guided to share repurchases or made that commentary. I think how I would frame it up is it's been the primary way that we have been able to distribute capital to shareholders historically. the near-term focus is to delever under the two turns. And then I think the world opens up a little bit more in terms of working through your capital allocation stacks. Additional internal investment, M&A opportunities, and share repurchases along the way. But it was absent from either guide.

But in the three-year guide, one of the reasons that the non-GAAP EPS has a higher growth rate than the adjusted EBITDA is really because of that delevering function, and we will generate cash. So we're not making share repurchases in, so we'll have a cash balance growing in this model, which then also kind of reduces your net interest expense.

Another question here from Kyle.

Yeah, thanks for all the information today. Very helpful. Well, since we have you guys all on stage, I think it might be helpful to just get a competitive update kind of across products. Obviously, you guys have highlighted leasing's been tough sledding for the last five years, so interesting to see how the competitive environment has evolved. And then since we have Nate and John, love to hear your takes. Sorry, one of you can cover leasing. And then, John, your perspective on kind of the BNPL competitive environment. And then, Lee, your two products as well.

Yeah, on the leasing side, you know, there's competition out there. Like Steve mentioned, in the S&B space, there's a lot of jockeying for position. We're the only partner out there with any real national footprint and exclusive partnership, and we've talked about the length of those contracts. We're very excited about that. But there's still a lot of greenfield to go get. And we mentioned, I think in the remarks, three notable wins at the end of last year, and those were competitive wins. So the competition's out there, but we still feel like we're the leader in the space and we're the best option not only for the customer, but for the retailer as well, to build a dependable business model around. And that compliance, the algorithm from a decisioning standpoint that they can depend on. When you start doing different things, it can get tough to depend on your partner. And you heard from Lisa and Jody how important that is. So we're still out there, competition's out there, but we still feel like we're winning and we'll continue to win.