PROG : Investor Presentation

Prog Holdings, Inc.

Investor

Presentation

2024

Safe Harbor Statement

Statements in this presentation regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "continue", "allow", "expectation", "outlook", "assumes" and similar forward-looking terminology. These risks and uncertainties include factors such as (i) continued volatility and challenges in the macro environment and, in particular, the unfavorable effects on our business of significant inflation, elevated interest rates, and fears of a recession, and the impact of those headwinds on: (a) consumer confidence and customer demand for the merchandise that our POS partners sell, in particular consumer durables; (b) our customers' disposable income and their ability to make the lease and loan payments they owe the Company; (c) the availability of consumer credit; and (d) our overall financial performance and outlook; (ii) our businesses being subject to extensive laws and regulations, including laws and regulations unique to the industries in which our businesses operate, that may subject them to government investigations and significant monetary penalties and compliance-related burdens, as well as an increased focus by federal, state and local regulators on the industries within which our businesses operate, including with respect to consumer protection, customer privacy, third party and employee fraud and information security; (iii) deteriorating macroeconomic conditions resulting in the algorithms and other proprietary decisioning tools used in approving Progressive Leasing and Vive customers for leases and loans no longer being indicative of their ability to perform, which may limit the ability of those businesses to avoid lease and loan charge-offs or may result in their reserves being insufficient to cover actual losses; (iv) the impact of the cybersecurity incident experienced by Progressive Leasing in September 2023 and expenses incurred in connection with responding to the matter, including the litigation filed in response to that incident, or any regulatory proceedings that may result from the incident; (v) a large percentage of the Company's revenues being concentrated with several of Progressive Leasing's key POS partners; (vi) the risks that Progressive Leasing will be unable to attract new POS partners or retain and grow its business with its existing POS partners; (vii) Vive's and Four's business models differing significantly from Progressive Leasing's, which creates specific and unique risks for each of the Vive and Four businesses, including Vive's reliance on a limited number of bank partners to issue its credit products and each of Vive's and Four's exposure to the unique regulatory risks associated with the laws and regulations that apply to each of their businesses; (viii) our ability to continue to protect confidential, proprietary, or sensitive information, including the personal and confidential information of our customers, which may be adversely affected by cyber-attacks, employee or other internal misconduct, computer viruses, electronic break-ins or "hacking", or similar disruptions, any one of which could have a material adverse impact on our results of operations, financial condition, and prospects; (ix) our cost reduction initiatives may not be adequate or may have unintended consequences that could be disruptive to our businesses, including with respect to our global workforce strategy; (x) the risk that our capital allocation strategy, including our current stock repurchase and dividend programs, as well as any future debt repurchase program, will not be effective at enhancing shareholder value and may have an adverse impact on our cash reserves; (xi) the loss of the services of our key executives or our inability to attract and retain key talent, particularly with respect to our information technology function, may have a material adverse impact on our operations; (xii) increased competition from traditional and virtual lease-to-own competitors and also from competitors of our Vive segment; (xiii) the transactions offered by our Progressive Leasing, Vive and/or Four businesses may be negatively characterized by government officials, consumer advocacy groups or the media; (xiv) real or perceived software or system errors, failures, bugs, defects or outages, including those that may be caused by third-party vendors, may adversely affect Progressive Leasing, Vive or Four; and (xv) the other risks and uncertainties discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 21, 2024. Statements in this presentation that are "forward-looking" include without limitation statements about: (i) the ability of our business model to be self-funding, including with respect to significant GMV growth rates; (ii) our free cash flow generation; (iii) our portfolio performance; (iv) our capital allocation priorities; (v) the competitive advantages we expect from our proprietary decisioning tools; and (vi) our outlook for 2024. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the date of this presentation.

2

Who we are

PROG Holdings, Inc. (NYSE:PRG) is a financial technology holding company headquartered in Salt Lake City, UT, that provides transparent, flexible, and inclusive payment options to help consumers create a better today and unlock the possibilities of tomorrow through financial empowerment.

PROG Holdings' operating segments include Progressive Leasing, an in-store,app-based, and e-commerce point- of-salelease-to-own solutions provider, Vive Financial, an omnichannel provider of second-look revolving credit products, Four Technologies, which offers Buy Now, Pay Later ("BNPL") payment options to consumers, and Build, an innovative credit building financial management tool.

What we do.

• We partner with tens of thousands of national, regional, and local retailers to offer innovative, transparent, and competitive consumer purchase options with flexible payment terms
• We offer retailers access to incremental revenue growth from otherwise unconverted sales opportunities
• Our virtual technology-based platforms offer immediate decisioning at the point-of-sale, integrating seamlessly with e-commerce,app-based, and brick-and-mortar retail platforms
• Our technology and employees provide our retail partners and customers with award-winning customer service and partner support

3

Key Investment Highlights

Profitable, asset-light,self-fundingbusiness model with consistent free cash flow generation

Large addressable market, broadly underserved

Proprietary AI/ML-based decisioning optimizes approval rates while delivering consistent portfolio performance

Scalable technology platforms allow for customizable integrations with retail partners of all sizes

Data-driven marketing attracts new customers

Award-winning customer care drives repeat business

4

PROG Holdings at a Glance

FY 2023 Results

	Adjusted		Cash Flow	Historical LTO
Revenue	Non-GAAP EPS	from	annual write-
EBITDA
		Operations	off range1
$2.408 B $297.4 M	$3.67	$204.2 M	6-8%

Source: Company SEC filings

1Defined as Progressive Leasing write-offs as a % of Progressive Leasing revenue

5

Serving the underserved

U.S. FICO Score Distribution

6.8%

4.3%

22.3%

20.7%

16.2%

12.5%

9.3%

7.8%

Addressable market approximates 40% of U.S. population

40%

300-499500-549550-599600-649650-699700-749750-799800-850

Sources: FICO.com and Progressive Leasing,

6

Three-Pillared Strategy

Grow our GMV through

existing merchant partners,GrowEnhance new partners, and direct-to-

consumer initiatives

Enhance our industry-leading consumer experience

Expand our ecosystem to	Expand
increase access and deliver
more value to our customers

7

Capital Allocation Priorities And Expectations

Fuel Growth

• Capital-lightand efficient business model allows for self- funding
• Strategically reinvest in business and technologies
• Ability to self-fund significant GMV growth rates

Explore Strategic

M&A Opportunities

• Explore adjacent products in support of core LTO business
• Entertain accretive acquisition opportunities

Return Excess Capital

to Shareholders

• Repurchased 36.9% of outstanding shares since January 1, 2021
• Initiated quarterly cash dividend in Q1 2024
• Increased share repurchase authorization to $500M as of 2/21/2024

8

Progressive Leasing at a Glance

Major Retailer Partners

2023 Revenues Attributed to Categories of Merchandise

58%

15%

15%

3%3% 6%

Furniture/Appliances/ Electronics

Jewelry

Mobile Phones & Accessories

Mattresses

Automobile

Electronics &

Accessories

Other

"[Progressive Leasing] has been bringing new customers to [our] stores - as well as some who haven't been to them in a while."

-CEO

Leading U.S. electronics retailer

"Progressive Leasing drives sales and it's all incremental."

-CFO

Leading U.S. furniture retailer

9

Source: PROG Holdings filings

Estimated Total Addressable Market

Progressive Leasing $2.3B

Current VLTO Market Size $7B - $8B

VLTO TAM	Near-term Opportunity
$30-40 Billion	$22-$31 Billion untapped potential
New customers - New retailers

Mid-term & Long-term Opportunity

New products to address underserved customer and retailer needs - New markets

Source: Management estimates

10