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PROG Holdings (NYSE: PRG) boosts 2026 guidance on Q1 profit and GMV growth

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

PROG Holdings reported strong Q1 2026 results and increased its full-year 2026 outlook. Revenue from continuing operations rose 11.1% to $742.7 million, while net earnings from continuing operations reached $36.2 million.

Adjusted EBITDA grew 29.2% to $90.3 million, lifting margin to 12.2% of revenues. Diluted EPS from continuing operations was $0.89, and non-GAAP diluted EPS climbed 37.8% to $1.24. Consolidated GMV rose 54.4% to $805.6 million, helped by the Purchasing Power acquisition and triple-digit growth at Four Technologies.

The company ended the quarter with $69.4 million of cash and $943.7 million of gross debt, and has reduced net recourse debt by $210 million since acquiring Purchasing Power, bringing its net leverage ratio to 2.0x. PROG now guides 2026 revenue to $3.0–$3.1 billion, adjusted EBITDA to $343–$370 million, and non-GAAP EPS to $4.40–$4.80, all higher than previous ranges.

Positive

  • Strong profit growth and margin expansion: Adjusted EBITDA from continuing operations rose 29.2% to $90.3 million, lifting consolidated margin to 12.2%, while non-GAAP diluted EPS increased 37.8% to $1.24.
  • Robust GMV and Four Technologies growth: Consolidated GMV grew 54.4% to $805.6 million, including Four’s GMV up 133.6% and earnings before taxes up 478.2% year over year.
  • Raised full-year 2026 guidance: The company increased 2026 outlook ranges, including revenue to $3.0–$3.1 billion, adjusted EBITDA to $343–$370 million, and non-GAAP EPS to $4.40–$4.80.
  • Deleveraging after Purchasing Power acquisition: Since acquiring Purchasing Power, PROG has reduced net recourse debt by $210 million, resulting in a reported net leverage ratio of 2.0x.

Negative

  • Core Leasing revenue decline: Progressive Leasing’s Q1 2026 revenues were $596.9 million, down 8.4% from the prior year, showing top-line pressure in the largest segment.
  • Loss at Purchasing Power: Newly acquired Purchasing Power generated a $7.5 million loss before taxes in Q1 2026, with adjusted EBITDA of only $0.8 million.
  • Higher debt balance post-acquisition: Gross debt stood at $943.7 million at quarter-end, up from $594.9 million at December 31, 2025, reflecting financing for the Purchasing Power acquisition.

Insights

Q1 beat on margins, strong Four growth, and a raised 2026 outlook signal improving earnings power.

PROG Holdings delivered 11.1% revenue growth to $742.7M with outsized profit expansion. Adjusted EBITDA rose 29.2% to $90.3M, lifting margin to 12.2%. Non-GAAP EPS grew 37.8% to $1.24, reflecting better unit economics and mix.

Segment data show pressure in Progressive Leasing revenue, down 8.4%, but higher profitability, while Four posted GMV growth of 133.6% and earnings before taxes up 478.2%. Newly acquired Purchasing Power adds scale but contributed a $7.5M pre-tax loss in the quarter.

The company raised full-year 2026 guidance: revenue to $3.0–$3.1B, adjusted EBITDA to $343–$370M, and non-GAAP EPS to $4.40–$4.80. Net recourse debt has been cut by $210M since the Purchasing Power acquisition, bringing net leverage to 2.0x, which may support flexibility for future capital allocation as disclosed in subsequent periods.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q1 2026 Revenue $742.7 million Consolidated revenues from continuing operations, up 11.1% year over year
Q1 2026 Net Earnings $36.2 million Net earnings from continuing operations, up from $34.6 million
Q1 2026 Adjusted EBITDA $90.3 million Adjusted EBITDA from continuing operations, up 29.2%
Q1 2026 Non-GAAP EPS $1.24 Non-GAAP diluted EPS from continuing operations, up 37.8% from $0.90
Q1 2026 GMV $805.6 million Consolidated gross merchandise volume, up 54.4%
Gross Debt $943.7 million Debt balance at March 31, 2026
FY 2026 Revenue Outlook $3.0–$3.1 billion Revised total revenues from continuing operations guidance range
FY 2026 Non-GAAP EPS Outlook $4.40–$4.80 Revised projected non-GAAP diluted EPS from continuing operations
Adjusted EBITDA financial
"Adjusted EBITDA from continuing operations for the quarter was $90.3 million, or 12.2% of revenues"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Gross Merchandise Volume financial
"Consolidated GMV of $805.6 million, up 54.4%"
Gross merchandise volume is the total dollar value of all goods and services sold through a sales platform or marketplace during a given period, measured before subtracting fees, returns, discounts or other adjustments. Investors use it to gauge the size and momentum of a business—like counting every dollar that passes through a busy market to assess demand—but it is not the same as company revenue or profit since the operator typically retains only a portion.
non-GAAP diluted earnings per share financial
"On a non-GAAP basis, diluted earnings per share from continuing operations were up 37.8% at $1.24"
Non-GAAP diluted earnings per share is a company’s per-share profit figure that starts with reported net income but then removes or alters certain items (like one-time charges, stock-based pay, or other adjustments) and divides by the number of shares after accounting for things that could dilute ownership. Investors use it as a “cleaned-up” measure to judge ongoing profit on a per-share basis, but because companies choose what to adjust, it can be more subjective than the standard GAAP metric—like comparing a regular bank statement to one that omits irregular expenses to show a steadier month-to-month picture.
net leverage ratio financial
"resulting in net leverage ratio of 2.0"
The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.
lease revenues and fees financial
"Lease revenues and fees $596,864"
Provision for credit losses financial
"Provision for credit losses 24,167"
Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.
Revenue $742.7 million +11.1% vs Q1 2025
Net earnings from continuing operations $36.2 million +4.6% vs Q1 2025
Adjusted EBITDA $90.3 million +29.2% vs Q1 2025
GAAP diluted EPS $0.89 +7.2% vs Q1 2025
Non-GAAP diluted EPS $1.24 +37.8% vs Q1 2025
Consolidated GMV $805.6 million +54.4% vs Q1 2025
Guidance

For full-year 2026, the company now expects total revenues from continuing operations of $3.0–$3.1 billion, adjusted EBITDA of $343–$370 million, and non-GAAP diluted EPS from continuing operations of $4.40–$4.80. For Q2 2026, it guides revenue to $700–$725 million and non-GAAP EPS to $0.85–$1.05.

Understanding 8-K Material Events →
false000180883400018088342026-04-292026-04-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
 ________________________________
 FORM 8-K
________________________________
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): April 29, 2026
PROG HOLDINGS, INC.
(Exact name of Registrant as Specified in Charter)
Georgia
1-39628
85-2484385
(State or other Jurisdiction of Incorporation)
(Commission File
Number)
(IRS Employer
Identification No.)
256 W. Data DriveDraper,Utah84020-2315
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (385) 351-1369
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
    ☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    ☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    ☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    ☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading SymbolName of each exchange on which registered
Common Stock, $0.50 Par ValuePRGNew York Stock Exchange
    Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
    Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


ITEM 2.02.     RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On April 29, 2026, PROG Holdings, Inc. (the "Company") issued a press release (the "Press Release") announcing its financial results for the first quarter ended March 31, 2026. A copy of the Press Release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. The information contained in this paragraph, as well as Exhibit 99.1 referenced herein, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
ITEM 9.01.     FINANCIAL STATEMENTS AND EXHIBITS

(d)    Exhibits:

Exhibit No.
Description
99.1
Press release, dated April 29, 2026.
99.2
PROG Holdings, Inc. Earnings Supplement Presentation, dated April 29, 2026.
104
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL


SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PROG Holdings, Inc.
By:
/s/ Brian Garner
Date:
April 29, 2026
Brian Garner
Chief Financial Officer



Exhibit 99.1


PROG Holdings Reports First Quarter 2026 Results
•Consolidated revenues from continuing operations of $742.7 million, up 11.1%; Net earnings from continuing operations of $36.2 million
•Adjusted EBITDA from continuing operations of $90.3 million, up 29.2%
•Diluted EPS from continuing operations of $0.89; Non-GAAP Diluted EPS from continuing operations of $1.24, up 37.8%
•Consolidated GMV of $805.6 million, up 54.4%
•$210 million of net recourse debt reduction since the acquisition of Purchasing Power, resulting in net leverage ratio of 2.0

SALT LAKE CITY, April 29, 2026 - PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Purchasing Power, Four Technologies and MoneyApp, today announced financial results for the first quarter ended March 31, 2026, which includes the results of Purchasing Power since January 2, 2026, the date the Company acquired Purchasing Power.
"We delivered a strong start to 2026, with first quarter results exceeding the high end of our outlook for earnings, and non-GAAP EPS," said PROG Holdings President and CEO Steve Michaels. "This performance reflects disciplined execution across the organization and the benefits of our diversified model, with improving trends at Progressive Leasing, continued triple-digit growth and strong economics at Four, and growth at Purchasing Power. Importantly, Progressive Leasing returned to year-over-year GMV growth as we exited the quarter, reflecting the progress we've made on our initiatives and the lapping of prior headwinds. We also meaningfully improved the balance sheet, reducing our net leverage ratio to two times as we prioritized debt reduction following the Purchasing Power acquisition."
"We saw continued momentum in our ecosystem with increasing engagement across products, which is driving higher customer lifetime value and improving acquisition efficiency. As our ecosystem scales, we are able to drive more efficient growth through cross-product connectivity."
"Based on our strong first quarter and the momentum we are seeing in the business, we have increased our full-year 2026 outlook, providing a positive start towards the three-year 2028 compound annual growth targets we outlined at our Investor Day. These targets, inclusive of Purchasing Power on a pro forma 2025 basis, are to grow consolidated GMV 20% to 25%, revenue 5% to 8%, Adjusted EBITDA 13% to 16%, and non-GAAP EPS 17% to 20%. Despite a challenging


macro environment, our model is performing as designed, and we remain focused on executing our Grow, Enhance, and Expand strategy that we believe will deliver durable, profitable growth and long-term shareholder value," concluded Michaels.
Consolidated Results
Consolidated revenues for the first quarter of 2026 were $742.7 million, an increase of 11.1% from the same period in 2025.
Consolidated net earnings from continuing operations for the quarter were $36.2 million, compared with $34.6 million in the prior year period. The effective income tax rate was 23.9% in the first quarter of 2026, compared to 26.8% in the same period in the prior year. Adjusted EBITDA from continuing operations for the quarter was $90.3 million, or 12.2% of revenues, compared with $69.9 million, or 10.5% of revenues for the same period in 2025.
Diluted earnings per share from continuing operations for the first quarter of 2026 were $0.89, compared with $0.83 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were up 37.8% at $1.24 in the first quarter of 2026, compared with $0.90 for the same period in 2025.
Progressive Leasing Results
Progressive Leasing's first quarter GMV of $393.0 million was down 2.2% compared to the same period in 2025. Revenues were $596.9 million, down 8.4% from the prior year. The provision for lease merchandise write-offs for the quarter was 7.3% of leasing revenues, approximately flat from the prior year, and within the Company's 6-8% targeted annual range. Earnings before taxes for the first quarter of 2026 were $52.0 million, up 6.9% from the first quarter of 2025. Adjusted EBITDA was $76.7 million, up 14.1% from the first quarter of 2025.
Four Results
Four's GMV for the first quarter of 2026 was $280.0 million, an increase of 133.6% compared to the same period in the prior year. Revenues were $35.0 million, up 142.3% from the year ago period. Four's earnings before taxes for the first quarter of 2026 were $11.4 million, up 478.2% from the first quarter of 2025. Adjusted EBITDA was $12.9 million, up 201.0% from the first quarter of 2025.


Purchasing Power Results
The Company acquired Purchasing Power on January 2, 2026. Accordingly, results for the first quarter 2026 reflect activity since the acquisition date. Purchasing Power's GMV, which is defined as the total value of merchandise and services purchased and delivered to customers through its platform, was $132.7 million, up 10.3% from the first quarter of 2025 on a standalone basis. Revenues were $107.1 million in the first quarter of 2026. Loss before taxes was $7.5 million and adjusted EBITDA was $0.8 million for the first quarter of 2026.
Liquidity and Capital Allocation
PROG Holdings ended the first quarter of 2026 with cash of $69.4 million and gross debt of $943.7 million. During the quarter, the Company incurred a total of $260.0 million of new corporate debt related to the acquisition of Purchasing Power on January 2, 2026, and $338.6 million of non-recourse funding debt for Purchasing Power remained in place immediately following the acquisition. Since the acquisition of Purchasing Power, the Company has reduced debt by $254.9 million. The Company did not repurchase any shares during the first quarter and maintains $309.6 million of repurchase capacity under its $500 million share repurchase program. Additionally, the Company paid a quarterly cash dividend of $0.14 per share.
2026 Outlook
Due to the strong start to the year and the momentum in the business, the Company is increasing its full year 2026 outlook for revenue and earnings as well as providing guidance for the second quarter of 2026. This outlook assumes an operating environment with no change in the current financial pressures and uncertainties for our customer, no material changes in the Company's decisioning posture, no meaningful increase in unemployment rates for our consumer base, an effective tax rate for non-GAAP EPS of approximately 26% and no impact from additional share purchases.


Revised 2026 outlook
Previous 2026 outlook
(In thousands, except per share amounts)LowHigh
Low
High
PROG Holdings - Total revenues from continuing operations
$3,000,000 $3,100,000 $2,950,000 $3,070,000 
PROG Holdings - Net earnings from continuing operations
150,500 166,000 132,000 155,000 
PROG Holdings - Adjusted EBITDA from continuing operations
343,000 370,000 320,000 350,000 
PROG Holdings - Diluted EPS from continuing operations
3.68 4.06 3.34 3.79 
PROG Holdings - Diluted non-GAAP EPS from continuing operations
4.40 4.80 4.00 4.45 
Progressive Leasing - Total revenues
2,227,500 2,285,000 2,202,500 2,253,000 
Progressive Leasing - Earnings before taxes
191,000 198,500 182,000 193,000 
Progressive Leasing - Adjusted EBITDA269,500 279,500 254,000 266,000 
Purchasing Power - Total revenues
620,000 640,000 610,000 660,000 
Purchasing Power - Earnings before taxes
14,500 22,000 13,000 22,000 
Purchasing Power - Adjusted EBITDA
50,000 60,000 50,000 60,000 
Four - Total revenues
140,000 157,000 125,000 140,000 
Four - Earnings before taxes
16,500 20,500 7,500 11,000 
Four - Adjusted EBITDA
25,000 29,000 17,500 22,500 
Other - Total revenues
12,500 18,000 12,500 17,000 
Other - Loss before taxes
(14,500)(12,000)(14,500)(12,000)
Other - Adjusted EBITDA(1,500)1,500 (1,500)1,500 
Three months ended
June 30, 2026 outlook
(In thousands, except per share amounts)LowHigh
PROG Holdings - Total revenues from continuing operations
$700,000$725,000
PROG Holdings - Net earnings from continuing operations
29,00038,000
PROG Holdings - Adjusted EBITDA from continuing operations
72,00082,000
PROG Holdings - Diluted EPS from continuing operations
0.740.93
PROG Holdings - Diluted non-GAAP EPS from continuing operations
0.851.05


Conference Call and Webcast
The Company has scheduled a live webcast and conference call for Wednesday, April 29, 2026, at 8:30 A.M. ET to discuss its financial results for the first quarter of 2026. To access the live webcast, visit the Events and Presentations page of the Company’s Investor Relations website, https://investor.progholdings.com/.
About PROG Holdings, Inc.
PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in Salt Lake City, UT, that provides inclusive, transparent and competitive payment options to consumers. The Company owns Progressive Leasing, a leading provider of e-commerce, app-based, and in-store point-of-sale lease-to-own solutions; Purchasing Power, a voluntary employee benefit program provider, allowing employees to purchase brand-name products and services through either automatic payroll deductions or allotments; Four Technologies, a provider of Buy Now, Pay Later payment options through its platform, Four; and MoneyApp, a mobile application that offers customers interest-free cash advances. More information on PROG Holdings and its companies can be found at https://investor.progholdings.com/.
Forward-Looking Statements:
Statements, estimates and projections in this press release 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 "continued," "outlook," "targets," "believe," "guidance," and similar forward-looking terminology. These risks and uncertainties include (i) continued volatility and challenges in the macroeconomic environment, including due to the war in Iran and related geopolitical disruptions and increases in fuel and other prices, and their impact on: (a) consumer confidence and customer demand for the merchandise that our retail partners and Purchasing Power sell, in particular consumer durables, such as home appliances, electronics and furniture; (b) our customers’ disposable income and their ability to make the lease and loan payments they owe the Company; and (c) our overall financial performance and outlook; (ii) the impact of the uncertain macroeconomic environment on our proprietary algorithms and decisioning tools that we use to approve customers such that they are no longer indicative of our customers’ ability to perform, which in turn may limit the ability of our businesses to manage risk, avoid lease and loan charge-offs and may result in insufficient reserves to cover actual losses; (iii) a large percentage of Progressive Leasing's revenue being concentrated with several key retail partners, and the loss of any of these retail partner relationships materially and adversely affecting several aspects of our performance; (iv) Progressive Leasing being unable to attract additional retail partners and retain and grow its relationships with its existing retail partners, and/or Purchasing Power being unable to attract additional employer-clients and retain and grow its relationships with its existing clients, resulting in several aspects of our performance being materially and adversely affected; (v) our businesses being unable to attract new consumers and retain and grow their relationships with their existing customers materially and adversely affecting several aspects of our performance; (vi) Four’s and Purchasing Power's business models differing significantly from Progressive Leasing’s


lease-to-own business, which means these businesses have different risk profiles; (vii) our efforts to modernize and enhance certain enterprise-wide information management systems and technologies adversely impacting our businesses and operations; (viii) the inability of our businesses to successfully operate in highly and increasingly competitive industries materially and adversely affecting several aspects of our performance; (ix) our business, results of operations, financial condition, and prospects being materially and adversely affected due to our businesses failing to maintain a consistently high level of consumer satisfaction and trust in its brands; (x) our businesses being subject to extensive federal, state and local laws and regulations, including certain laws and regulations unique to the industries in which our businesses operate, that may subject them to government investigations and significant monetary penalties, remediation expenses and compliance-related burdens that may result in them changing the manner in which they operate, which may be materially adverse to several aspects of our performance; (xi) our performance being materially and adversely affected due to the transactions offered to consumers by our businesses being negatively characterized by federal, state and local government officials, consumer advocacy groups and the media; (xii) our inability to protect confidential, proprietary, or sensitive information, including the confidential information of our customers, being adversely affected by cyber-attacks or similar disruptions, which may result in significant costs, litigation and reputational damage or otherwise have a material adverse impact on several aspects of our performance; (xiii) any significant disruption in our vendors' information technology systems, or disruptions in the information our businesses rely on in their lease and loan decisioning, materially and adversely affecting several aspects of our performance; (xiv) our capital allocation strategy and financial policies; 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, 2025, filed with the SEC on February 18, 2026. Statements, estimates and projections in this press release that are "forward-looking" include without limitation statements, estimates and projections about: (i) improving performance trends in our Progressive Leasing business; (ii) continued growth of our Four business; (iii) our ability to improve customer acquisition efficiency and lifetime value; (iv) our ability to deliver sustainable, profitable growth and long-term shareholder value going forward; (v) our revised full year 2026 outlook and the guidance we provide for the second quarter of 2026; and (vi) our three-year CAGR targets for GMV, Revenue, Adjusted EBITDA and non-GAAP Earnings Per Share. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 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 press release.
Investor Contact
John A. Baugh, CFA
Vice President, Investor Relations
john.baugh@progholdings.com

PROG Holdings, Inc.
Consolidated Statement of Earnings
(In thousands, except per share data)
(Unaudited) 
 Three months ended
March 31,
20262025
Revenues
Lease revenues and fees$596,864 $651,557 
Product and service revenues106,406 — 
Other revenue39,404 16,871 
742,674 668,428 
Costs and expenses
Depreciation of lease merchandise409,010 460,443 
Cost of product sales62,506 — 
Provision for lease merchandise write-offs43,651 48,018 
Operating expenses150,200 98,124 
Provision for credit losses24,167 5,501 
689,534 612,086 
Gain on sale of lease receivables6,457 — 
Gain on change in fair value of receivables
5,712 — 
Operating profit65,309 56,342 
Interest expense(18,389)(9,963)
Interest income643 873 
Earnings from continuing operations before income tax expense47,563 47,252 
Income tax expense11,345 12,662 
Net earnings from continuing operations36,218 34,590 
(Loss) earnings from discontinued operations, net of tax(164)128 
Net earnings$36,054 $34,718 
Basic earnings per share
Continuing operations$0.91 $0.85 
Discontinued operations— — 
Total basic earnings per share$0.91 $0.85 
Diluted earnings per share
Continuing operations$0.89 $0.83 
Discontinued operations— — 
Total diluted earnings per share$0.89 $0.83 
Cash dividend declared per share
Common Stock$0.14 $0.13 
Weighted average shares outstanding
Basic39,898 40,841 
Diluted
40,810 41,851 

PROG Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except share data)

March 31,
2026		December 31,
2025
Assets
Cash and cash equivalents$69,386 $308,774 
Restricted cash10,116 — 
Receivables (net of allowances and unearned interest income of $80,638 in 2026 and $68,806 in 2025; includes $203,043 recorded at fair value in 2026)1
387,586 74,228 
Other receivables (net of allowances and unearned interest income of $3,344 in 2026 and $0 in 2025; includes $20,891 recorded at fair value in 2026)1
34,588 — 
Lease merchandise (net of accumulated depreciation and allowances of $412,002 in 2026 and $407,104 in 2025)
531,292 609,009 
Loans receivable (net of allowances and unamortized fees of $18,055 in 2026 and $18,246 in 2025)
71,000 90,648 
Property and equipment, net
21,817 19,526 
Goodwill and other intangibles, net771,676 353,835 
Income tax receivable26,601 47,894 
Deferred income tax assets19,311 19,561 
Prepaid expenses and other assets86,649 73,383 
Assets of discontinued operations12,490 13,550 
Total assets$2,042,512 $1,610,408 
Liabilities and shareholders' equity
Accounts payable and accrued expenses$136,967 $96,471 
Debt, net1
936,122 594,861 
Deferred income tax liabilities147,922 121,152 
Other liabilities43,759 44,676 
Liabilities of discontinued operations3,387 6,831 
Total liabilities
1,268,157 863,991 
Shareholders' equity
Common stock, par value $0.50 per share: authorized: 225,000,000 shares at March 31, 2026 and December 31, 2025; shares issued: 82,078,654 at March 31, 2026 and December 31, 2025
41,039 41,039 
Additional paid-in capital348,486 363,583 
Retained earnings1,624,879 1,594,685 
2,014,404 1,999,307 
Less: treasury shares at cost
Common Stock: 42,014,857 shares at March 31, 2026 and 42,502,844 at December 31, 2025
(1,240,049)(1,252,890)
Total shareholders' equity
774,355 746,417 
Total liabilities and shareholders' equity
$2,042,512 $1,610,408 
1 As of March 31, 2026, receivables included $375.1 million of contractual amounts outstanding of consolidated VIEs that can only be used to settle their obligations, and debt included $293.7 million of liabilities of consolidated VIEs for which creditors have no recourse to the Company.

PROG Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
Three months ended March 31,
20262025
Operating activities(in thousands)
Net earnings$36,054 $34,718 
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation of lease merchandise409,010 460,443 
Other depreciation and amortization14,150 6,122 
Provisions for accounts receivable and credit losses
100,150 98,958 
Stock-based compensation7,642 7,902 
Gain on change in fair value of receivables
(5,712)— 
Deferred income taxes7,756 (9,928)
Gain on sale of receivables(7,030)— 
Non-cash lease expense(732)(1,025)
Other changes, net964 (15)
Changes in operating assets and liabilities:
Additions to lease merchandise(389,976)(385,254)
Book value of lease merchandise sold or disposed58,682 49,654 
Accounts receivable(32,901)(70,947)
Prepaid expenses and other assets(802)5,533 
Income tax receivable and payable21,269 22,200 
Accounts payable and accrued expenses(44,499)(3,761)
Customer deposits and advance payments(2,326)(4,671)
Cash provided by operating activities171,699 209,929 
Investing activities
Investments in loans receivable(284,863)(165,883)
Proceeds from loans receivable293,997 163,753 
Funding of other receivables(19,419)— 
Collections from other receivables18,821 — 
Purchases of property and equipment(3,149)(1,962)
Proceeds from sale of property and equipment584 — 
Acquisition of business, net of cash acquired(391,845)— 
Cash used in investing activities(385,874)(4,092)
Financing activities
Proceeds from debt546,178 — 
Repayments on debt(541,108)(50,000)
Dividends paid(5,609)(5,265)
Acquisition of treasury stock— (26,119)
Issuance of stock under stock option and employee purchase plans187 325 
Cash paid for shares withheld for employee taxes(10,117)(7,048)
Debt issuance costs(4,628)(84)
Cash used in financing activities(15,097)(88,191)
(Decrease) increase in cash, cash equivalents and restricted cash
(229,272)117,646 
Cash, cash equivalents and restricted cash at beginning of period308,774 95,655 
Cash, cash equivalents and restricted cash at end of period$79,502 $213,301 
Net cash (received) paid during the period:
Interest$8,722 $509 
Income taxes$(17,687)$300 

PROG Holdings, Inc.
Quarterly Revenues by Segment
(In thousands)

(Unaudited)
Three months ended
March 31, 2026
Progressive LeasingPurchasing PowerFourOther
Consolidated total
Lease revenues and fees
$596,864 $— $— $— $596,864 
Product and service revenues
— 106,406 — — 106,406 
Other revenues
— 729 34,967 3,708 39,404 
Total revenues
$596,864 $107,135 $34,967 $3,708 $742,674 

(Unaudited)
Three months ended
March 31, 2025
Progressive LeasingPurchasing PowerFourOther
Consolidated total
Lease revenues and fees
$651,557 $— $— $— $651,557 
Product and service revenues
— — — — — 
Other revenues
— — 14,429 2,442 16,871 
Total revenues
$651,557 $— $14,429 $2,442 $668,428 

PROG Holdings, Inc.
Quarterly Gross Merchandise Volume by Segment
(In thousands)

(Unaudited)
Three months ended March 31,
Change
20262025
$
%
Progressive Leasing$392,970 $401,962 $(8,992)(2.2)%
Purchasing Power
132,678 — 132,678 nmf
Four
279,990 119,863 160,127 133.6 
Total GMV
$805,638 $521,825 $283,813 54.4 %
nmf - Calculation is not meaningful

(Unaudited)
Purchasing Power
Pre-Acquisition Gross Merchandise Volume
Three months ended
Twelve months ended
March 31, 2025June 30, 2025September 30, 2025December 31, 2025December 31, 2025
Gross merchandise volume
$120,287 $137,890 $143,516 $247,641 $649,334 


Use of Non-GAAP Financial Information:
Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations per share, and adjusted EBITDA are supplemental measures of our performance that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Non-GAAP diluted earnings per share from continuing operations for the full year 2026 and second quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction-related costs, gain on changes in fair value of receivables and also excludes Vive as its normal operations have been discontinued as a result of the sale of its credit card portfolio in October 2025. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings per share from continuing operations for the three months ended March 31, 2026 exclude intangible amortization expense, transaction-related costs, restructuring costs, gain on changes in fair value of receivables, and costs related to the cybersecurity incident, net of insurance recoveries. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations per share for the three months ended March 31, 2025 exclude intangible amortization expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. The amount for the after-tax non-GAAP adjustment, which is tax effected using our statutory tax rate, can be found in the reconciliation of net earnings and diluted earnings per share to non-GAAP net earnings and diluted earnings per share table in this press release.
The Adjusted EBITDA figures presented in this press release are calculated as the Company’s earnings from continuing operations before interest expense, net, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the full year and second quarter 2026 outlook also excludes stock-based compensation expense, transaction-related costs for the acquisition of Purchasing Power, restructuring charges, gain on changes in fair value of receivables, and the operations of Vive. Adjusted EBITDA for the full year and second quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three months ended March 31, 2026 also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, gain on changes in fair value of receivables, and transaction-related costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three months ended March 31, 2025 also excludes stock-based compensation expense and costs related to the cybersecurity incident, net of insurance recoveries. The amounts for these pre-tax non-GAAP adjustments can be found in the segment EBITDA tables in this press release.
Management believes that non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA provide relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and business unit performance.


Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations, and adjusted EBITDA provide management and investors with an understanding of the results from the primary operations of our business by excluding the effects of certain items that generally arose from larger, one-time transactions that are not reflective of the ordinary earnings activity of our operations or transactions that have variability and volatility of the amount. We believe the exclusion of stock-based compensation expense provides for a better comparison of our operating results with our peer companies as the calculations of stock-based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types. We believe interest expense on Purchasing Power's asset-backed secured borrowings represents a direct operating cost required to generate revenue; therefore, the Company is including this interest expense when calculating consolidated and Purchasing Power's adjusted EBITDA. This measure may be useful to an investor in evaluating the underlying operating performance of our business.
Adjusted EBITDA also provides management and investors with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. These measures may be useful to an investor in evaluating our operating performance because the measures:
•Are widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors.
•Are used by rating agencies, lenders and other parties to evaluate our creditworthiness.
•Are used by our management for various purposes, including as a measure of performance of our operating entities and as a basis for strategic planning and forecasting.
Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company’s GAAP basis net earnings and diluted earnings per share and the GAAP revenues and earnings before income taxes of the Company’s segments, which are also presented in the press release. Further, we caution investors that amounts presented in accordance with our definitions of non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner.

PROG Holdings, Inc.
Reconciliation of Net Earnings and Diluted Earnings Per Share to
Non-GAAP Net Earnings and Diluted Earnings Per Share
(In thousands, except per share amounts)
(Unaudited)
Three months ended
March 31,
20262025
Net earnings from continuing operations
$36,218 $34,590 
Add: Intangible amortization expense
11,812 4,001 
Add: Restructuring expense
3,872 — 
Add: Costs related to the cybersecurity incident, net of insurance recoveries
9 (18)
Add: Transaction-related costs
9,691 — 
Less: Gain on changes in fair value of receivables
(5,712)— 
Less: Tax impact of adjustments(1)
(5,115)(1,036)
Non-GAAP net earnings from continuing operations
$50,775 $37,537 
Diluted earnings per share from continuing operations
0.89 0.83 
Add: Intangible amortization expense
0.29 0.10 
Add: Restructuring expense
0.09 — 
Add: Costs related to the cybersecurity incident, net of insurance recoveries
— — 
Add: Transaction-related costs
0.24 — 
Less: Gain on changes in fair value of receivables
(0.14)— 
Less: Tax impact of adjustments(1)
(0.13)(0.02)
Non-GAAP diluted earnings per share from continuing operations(2)
$1.24 $0.90 
Diluted weighted average shares outstanding
40,810 41,851 
(1)Adjustments are tax-effected using an assumed statutory tax rate of 26%.
(2)In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

PROG Holdings, Inc.
Non-GAAP Financial Information
Quarterly Segment Adjusted EBITDA
(In thousands)

(Unaudited)
Three months ended
March 31, 2026
Progressive Leasing
Purchasing Power
Four
Other
Consolidated total
Net earnings from continuing operations
$36,218 
Income tax expense(1)
11,345 
Earnings (loss) from continuing operations before income tax expense
$51,960 $(7,500)$11,390 $(8,287)47,563 
Interest expense, net
11,603 423 1,073 3 13,102 
Depreciation1,540 273 24 501 2,338 
Amortization3,771 7,812 229 — 11,812 
EBITDA from continuing operations
68,874 1,008 12,716 (7,783)74,815 
Stock-based compensation
7,287 414 189 (278)7,612 
Transaction-related costs
— 1,781 — 7,910 9,691 
Restructuring expense
526 3,343 — 3 3,872 
Gain on changes in fair value of receivables
— (5,712)— — (5,712)
Costs related to the cybersecurity incident, net of insurance recoveries
9 — — — 9 
Adjusted EBITDA from continuing operations
$76,696 $834 $12,905 $(148)$90,287 
(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

(Unaudited)
Three months ended
March 31, 2025
Progressive Leasing
Four
Other
Consolidated total
Net earnings from continuing operations
$34,590 
Income tax expense(1)
12,662 
Earnings (loss) from continuing operations before income tax expense
$48,625 $1,970 $(3,343)47,252 
Interest expense, net
7,163 1,233 694 9,090 
Depreciation1,357 162 455 1,974 
Amortization3,771 230 — 4,001 
EBITDA from continuing operations
60,916 3,595 (2,194)62,317 
Stock-based compensation
6,307 692 591 7,590 
Costs related to the cybersecurity incident, net of insurance recoveries
(18)— — (18)
Adjusted EBITDA from continuing operations
$67,205 $4,287 $(1,603)$69,889 
(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of Revised Full Year 2026 Outlook for Adjusted EBITDA
(In thousands)

Fiscal year 2026 ranges
Progressive Leasing
Purchasing Power
Four
Other
Consolidated total
Estimated net earnings from continuing operations
$150,500 - $166,000
Income tax expense(1)
57,000 - 63,000
Projected earnings (loss) from continuing operations before income tax expense
$191,000 - $198,500
$14,500 - $22,000
$16,500 - $20,500
$(14,500) - $(12,000)
207,500 - 229,000
Interest expense, net
38,000
1,500 - 2,000
5,500
1,500 - 2,000
46,500 - 47,500
Depreciation
6,500 - 7,500
5,500 - 6,000
5003,000
15,500 - 17,000
Amortization4,00032,0001,000—37,000
Projected EBITDA from continuing operations
239,500 - 248,000
53,500 - 62,000
23,500 - 27,500
(10,000) - (7,000)
306,500 - 330,500
Stock-based compensation
29,500 - 30,500
2,000 - 3,000
1,500500
33,500 - 35,500
Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of receivables/ acquisition-related transaction-costs
500 - 1,000
(5,500) - (5,000)
—8,000
3,000 - 4,000
Projected adjusted EBITDA from continuing operations
$269,500 - $279,500
$50,000 - $60,000
$25,000 - $29,000
$(1,500) - $1,500
$343,000 - $370,000
(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of Previous Full Year 2026 Outlook for Adjusted EBITDA
(In thousands)

Fiscal year 2026 ranges
Progressive Leasing
Purchasing Power
Four
Other
Consolidated total
Estimated net earnings from continuing operations
$132,000 - $155,000
Income tax expense(1)
56,000 - 59,000
Projected earnings (loss) from continuing operations before income tax expense
$182,000 - $193,000
$13,000 - $22,000
$7,500 - $11,000
$(14,500) - $(12,000)
188,000 - 214,000
Interest expense, net
36,000 - 35,000
1,000
8,000 - 9,000
1,500 - 2,000
46,500 - 47,000
Depreciation
5,000 - 6,000
9,000—2,500
16,500 - 17,500
Amortization4,000
18,000 - 19,000
1,000—
23,000 - 24,000
Projected EBITDA from continuing operations
227,000 - 238,000
41,000 - 51,000
16,500 - 21,000
(10,500) - (7,500)
274,000 - 302,500
Stock-based compensation
27,000 - 28,000
1,000
1,000 - 1,500
—
29,000 - 30,500
Restructuring/ regulatory insurance recoveries/ cyber/ transaction-related costs
—8,000—9,00017,000
Projected adjusted EBITDA from continuing operations
$254,000 - $266,000
$50,000 - $60,000
$17,500 - $22,500
$(1,500) - $1,500
$320,000 - $350,000
(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of the Three Months Ended June 30, 2026 Outlook for Adjusted EBITDA
(In thousands)

Three months ended
June 30, 2026
Consolidated total
Estimated net earnings from continuing operations
$29,000 - $38,000
Income tax expense(1)
14,000
Projected earnings from continuing operations before income tax expense
43,000 - 52,000
Interest expense, net
10,500
Depreciation
4,000 - 5,000
Amortization8,500
Projected EBITDA from continuing operations
66,000 - 76,000
Stock-based compensation
9,000
Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of receivables
(3,000)
Projected adjusted EBITDA from continuing operations
$72,000 - $82,000
(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.
Reconciliation of Revised Full Year 2026 Outlook for Diluted Earnings Per Share
to Non-GAAP Diluted Earnings Per Share

Full year 2026
LowHigh
Projected diluted earnings per share from continuing operations
$3.68 $4.06 
Add: Projected intangible amortization expense
0.90 0.90 
Add: Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of receivables
0.07 0.10 
Subtract: Tax effect on non-GAAP adjustments(1)
(0.25)(0.26)
Projected non-GAAP diluted earnings per share from continuing operations(2)
$4.40 $4.80 
(1)Adjustments are tax-effected using an assumed statutory tax rate of 26%.
(2)In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

PROG Holdings, Inc.
Reconciliation of Previous Full Year 2026 Outlook for Diluted Earnings Per Share
to Non-GAAP Diluted Earnings Per Share

Full year 2026
LowHigh
Projected diluted earnings per share from continuing operations
$3.34 $3.79 
Add: Projected intangible amortization expense
0.58 0.59 
Add: Restructuring/ regulatory insurance recoveries/ cyber/ transaction-related costs
0.29 0.29 
Subtract: Tax effect on non-GAAP adjustments(1)
(0.22)(0.22)
Projected non-GAAP diluted earnings per share from continuing operations(2)
$4.00 $4.45 
(1)Adjustments are tax-effected using an assumed statutory tax rate of 26%.
(2)In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

PROG Holdings, Inc.
Reconciliation of the Three Months Ended June 30, 2026 Outlook for Diluted
Earnings Per Share to Non-GAAP Diluted Earnings Per Share

Three months ended
June 30, 2026
LowHigh
Projected diluted earnings per share from continuing operations
$0.74 $0.93 
Add: Projected intangible amortization expense
0.22 0.22 
Add: Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of receivables
(0.07)(0.07)
Subtract: Tax effect on non-GAAP adjustments(1)
(0.04)(0.04)
Projected non-GAAP diluted earnings per share from continuing operations(2)
$0.85 $1.05 
(1)Adjustments are tax-effected using an assumed statutory tax rate of 26%.
(2)In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

PROG Internal PROG Holdings, Inc. Q1 2026 Earnings Supplement April 29, 2026 Exhibit 99.2

 

2 Statements, estimates and projections in this earnings supplement 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 "continued," "outlook," "targets," “believe,” “guidance,” and similar forward-looking terminology. These risks and uncertainties include (i) continued volatility and challenges in the macroeconomic environment, including due to the war in Iran and related geopolitical disruptions and increases in fuel and other prices, and their impact on: (a) consumer confidence and customer demand for the merchandise that our retail partners and Purchasing Power sell, in particular consumer durables, such as home appliances, electronics and furniture; (b) our customers’ disposable income and their ability to make the lease and loan payments they owe the Company; and (c) our overall financial performance and outlook; (ii) the impact of the uncertain macroeconomic environment on our proprietary algorithms and decisioning tools that we use to approve customers such that they are no longer indicative of our customers’ ability to perform, which in turn may limit the ability of our businesses to manage risk, avoid lease and loan charge-offs and may result in insufficient reserves to cover actual losses; (iii) a large percentage of Progressive Leasing's revenue being concentrated with several key retail partners, and the loss of any of these retail partner relationships materially and adversely affecting several aspects of our performance; (iv) Progressive Leasing being unable to attract additional retail partners and retain and grow its relationships with its existing retail partners, and/or Purchasing Power being unable to attract additional employer-clients and retain and grow its relationships with its existing clients, resulting in several aspects of our performance being materially and adversely affected; (v) our businesses being unable to attract new consumers and retain and grow their relationships with their existing customers materially and adversely affecting several aspects of our performance; (vi) Four’s and Purchasing Power's business models differing significantly from Progressive Leasing’s lease-to-own business, which means these businesses have different risk profiles; (vii) our efforts to modernize and enhance certain enterprise-wide information management systems and technologies adversely impacting our businesses and operations; (viii) the inability of our businesses to successfully operate in highly and increasingly competitive industries materially and adversely affecting several aspects of our performance; (ix) our business, results of operations, financial condition, and prospects being materially and adversely affected due to our businesses failing to maintain a consistently high level of consumer satisfaction and trust in its brands; (x) our businesses being subject to extensive federal, state and local laws and regulations, including certain laws and regulations unique to the industries in which our businesses operate, that may subject them to government investigations and significant monetary penalties, remediation expenses and compliance-related burdens that may result in them changing the manner in which they operate, which may be materially adverse to several aspects of our performance; (xi) our performance being materially and adversely affected due to the transactions offered to consumers by our businesses being negatively characterized by federal, state and local government officials, consumer advocacy groups and the media; (xii) our inability to protect confidential, proprietary, or sensitive information, including the confidential information of our customers, being adversely affected by cyber-attacks or similar disruptions, which may result in significant costs, litigation and reputational damage or otherwise have a material adverse impact on several aspects of our performance; (xiii) any significant disruption in our vendors' information technology systems, or disruptions in the information our businesses rely on in their lease and loan decisioning, materially and adversely affecting several aspects of our performance; (xiv) our capital allocation strategy and financial policies; 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, 2025, filed with the SEC on February 18, 2026. Statements, estimates and projections in this earnings supplement that are "forward-looking" include without limitation statements, estimates and projections about: (i) improving performance trends in our Progressive Leasing business; (ii) continued growth of our Four business; (iii) our ability to improve customer acquisition efficiency and lifetime value; (iv) our ability to deliver sustainable, profitable growth and long-term shareholder value going forward; (v) our revised full year 2026 outlook and the guidance we provide for the second quarter of 2026; and (vi) our three-year CAGR targets for GMV, Revenue, Adjusted EBITDA and non-GAAP Earnings Per Share. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this earnings supplement. 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 earnings supplement. Use of Forward-Looking Statements

 

PROG Internal 3 PROG Holdings Q1 2026 Headlines • Consolidated revenues from continuing operations of $742.7 million, up 11.1%; Net earnings from continuing operations of $36.2 million • Adjusted EBITDA from continuing operations of $90.3 million, up 29.2% • Diluted EPS from continuing operations of $0.89; Non- GAAP Diluted EPS from continuing operations of $1.24, up 37.8% • Consolidated GMV of $805.6 million, up 54.4% • $210M of net recourse debt reduction since the acquisition of Purchasing Power, resulting in net leverage ratio of 2.0

 

PROG Internal 4 “We delivered a strong start to 2026, with first quarter results exceeding the high end of our outlook for earnings, and non-GAAP EPS,” said PROG Holdings President and CEO Steve Michaels. “This performance reflects disciplined execution across the organization and the benefits of our diversified model, with improving trends at Progressive Leasing, continued triple-digit growth and strong economics at Four, and growth at Purchasing Power. Importantly, Progressive Leasing returned to year-over-year GMV growth as we exited the quarter, reflecting the progress we’ve made on our initiatives and the lapping of prior headwinds. We also meaningfully improved the balance sheet, reducing our net leverage ratio to two times as we prioritized debt reduction following the Purchasing Power acquisition.” “We saw continued momentum in our ecosystem with increasing engagement across products, which is driving higher customer lifetime value and improving acquisition efficiency. As our ecosystem scales, we are able to drive more efficient growth through cross- product connectivity.” “Based on our strong first quarter and the momentum we are seeing in the business, we have increased our full-year 2026 outlook, providing a positive start towards the three-year 2028 compound annual growth targets we outlined at our Investor Day. These targets, inclusive of Purchasing Power on a pro forma 2025 basis, are to grow consolidated GMV 20% to 25%, revenue 5% to 8%, Adjusted EBITDA 13% to 16%, and non-GAAP EPS 17% to 20%. Despite a challenging macro environment, our model is performing as designed, and we remain focused on executing our Grow, Enhance, and Expand strategy that we believe will deliver durable, profitable growth and long-term shareholder value,” concluded Michaels. Steve Michaels President and CEO, PROG Holdings, Inc. PROG Holdings Executive Commentary

 

PROG Internal Adjusted EBITDA in millions 5 $668.4 $588.5 $577.7 $574.6 $742.7 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Non-GAAP EPSRevenue in millions 10.5% 12.2% 11.4% 10.7% 12.2% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Adjusted EBITDA as a % of PROG Holdings consolidated revenues PROG Holdings Q1 Consolidated Results (from continuing operations) $69.9 $72.0 $65.7 $61.5 $90.3 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 $0.90 $1.00 $0.87 $0.74 $1.24 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 • Consolidated revenue increased 11.1% driven by the acquisition of Purchasing Power and growth at Four Technologies, partially offset by a decline in the Leasing segment • Non-GAAP EPS increased 37.8%, primarily driven by higher margins in the Leasing business and much improved margins at Four • The year-over-year increase in Adjusted EBITDA was primarily a result of a higher yield on the Leasing portfolio and strong revenue and earnings at Four Q1 2026 consolidated results include Purchasing Power

 

PROG Internal Results

 

PROG Internal 7 2026 2025 Consolidated GMV $805.6 $521.8 54.4% Revenue $742.7 $668.4 11.1% GAAP Net Earnings $36.2 $34.6 4.6% Adjusted Net Earnings $50.8 $37.5 35.5% Adjusted EBITDA $ $90.3 $69.9 29.2% Adjusted EBITDA % 12.2% 10.5% 170 bps GAAP Diluted Earnings Per Share* $0.89 $0.83 7.2% Non-GAAP Diluted Earnings Per Share* $1.24 $0.90 37.8% Three Months Ended March 31 Change *GAAP to non-GAAP reconciliation tables available in appendix All dollar amounts in millions except EPS Q1 2026 consolidated results include Purchasing Power PROG Holdings Consolidated Q1 Results (from continuing operations)

 

PROG Internal 8 PROG Holdings Consolidated Results Cash and Cash Equivalents As of 3/31/2026 $69.4M Gross Recourse Debt1 As of 3/31/2026 $650M Net Leverage Ratio2 As of 3/31/2026 2.0x Cash Flow From Continuing Operations Three Months Ended 3/31/2026 $175.5M 1) Recourse debt does not include securitization funding debt from Purchasing Power 2) Net leverage ratio defined as Gross recourse debt minus cash and cash equivalents divided by trailing 12-month adjusted EBITDA (does not add back interest from nonrecourse ABS debt)

 

PROG Internal 9 PROG Holdings Full-Year 2026 Outlook The Company is increasing its full year 2026 outlook. The outlook assumes an operating environment with no change in the current financial pressures and uncertainties for our customers, no material changes in the company’s decisioning posture, no meaningful increase in unemployment rates for our consumer base, an effective tax rate for Non-GAAP EPS of approximately 26%, and no impact from additional share purchases. Other - Loss Before Taxes includes $8.9 million of transaction-related costs and fees for the Purchasing Power acquisition.

 

PROG Internal 10 PROG Holdings Q2 2026 Outlook The Company is providing selective second quarter 2026 outlook metrics. The outlook assumes an operating environment with no change in the current financial pressures and uncertainties for our customers, no material changes in the company’s decisioning posture, no meaningful increase in unemployment rates for our consumer base, an effective tax rate for Non-GAAP EPS of approximately 26%, and no impact from additional share purchases.

 

PROG Internal

 

PROG Internal Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations per share, and adjusted EBITDA are supplemental measures of our performance that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Non-GAAP diluted earnings per share from continuing operations for the full year 2026 and second quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction-related costs, gain on changes in fair value of receivables and also excludes Vive as its normal operations have been discontinued as a result of the sale of its credit card portfolio in October 2025. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings per share from continuing operations for the three months ended March 31, 2026 exclude intangible amortization expense, transaction-related costs, restructuring costs, gain on changes in fair value of receivables, and costs related to the cybersecurity incident, net of insurance recoveries. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations per share for the three months ended March 31, 2025 exclude intangible amortization expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. The amount for the after-tax non-GAAP adjustment, which is tax effected using our statutory tax rate, can be found in the reconciliation of net earnings and diluted earnings per share to non-GAAP net earnings and diluted earnings per share table in this presentation. The Adjusted EBITDA figures presented in this presentation are calculated as the Company’s earnings from continuing operations before interest expense, net, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the full year and second quarter 2026 outlook also excludes stock-based compensation expense, transaction-related costs for the acquisition of Purchasing Power, restructuring charges, gain on changes in fair value of receivables, and the operations of Vive. Adjusted EBITDA for the full year and second quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three months ended March 31, 2026 also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, gain on changes in fair value of receivables, and transaction-related costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three months ended March 31, 2025 also excludes stock-based compensation expense and costs related to the cybersecurity incident, net of insurance recoveries. The amounts for these pre-tax non-GAAP adjustments can be found in the segment EBITDA tables in this presentation. Management believes that non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA provide relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and business unit performance. Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations, and adjusted EBITDA provide management and investors with an understanding of the results from the primary operations of our business by excluding the effects of certain items that generally arose from larger, one-time transactions that are not reflective of the ordinary earnings activity of our operations or transactions that have variability and volatility of the amount. We believe the exclusion of stock-based compensation expense provides for a better comparison of our operating results with our peer companies as the calculations of stock- based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types. We believe interest expense on Purchasing Power's asset- backed secured borrowings represents a direct operating cost required to generate revenue; therefore, the Company is including this interest expense when calculating consolidated and Purchasing Power's adjusted EBITDA. This measure may be useful to an investor in evaluating the underlying operating performance of our business. Adjusted EBITDA also provides management and investors with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. These measures may be useful to an investor in evaluating our operating performance because the measures: • Are widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors. • Are used by rating agencies, lenders and other parties to evaluate our creditworthiness. • Are used by our management for various purposes, including as a measure of performance of our operating entities and as a basis for strategic planning and forecasting. Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company’s GAAP basis net earnings and diluted earnings per share and the GAAP revenues and earnings before income taxes of the Company’s segments, which are also presented in the presentation. Further, we caution investors that amounts presented in accordance with our definitions of non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner. 12 Use of Non-GAAP Financial Measures

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Reconciliation of Net Earnings and Diluted Earnings Per Share to Non- GAAP Net Earnings and Diluted Earnings Per Share (In thousands, except per share amounts)

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Reconciliation of Net Earnings and Diluted Earnings Per Share to Non- GAAP Net Earnings and Diluted Earnings Per Share (In thousands, except per share amounts)

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Consolidated & Progressive Leasing Adjusted EBITDA %

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2026 Outlook for Adjusted EBITDA (In thousands)

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Previous Full Year 2026 Outlook for Adjusted EBITDA (In thousands)

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three Months Ended June 30, 2026 Outlook for Adjusted EBITDA (In thousands)

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2026 Outlook for Diluted Earnings Per Share to Non-GAAP Diluted Earnings Per Share

 

PROG Internal GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Previous Full Year 2026 Outlook for Diluted Earnings Per Share to Non-GAAP Diluted Earnings Per Share

 

GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three Months Ended June 30, 2026 Outlook for Diluted Earnings Per Share to Non- GAAP Diluted Earnings Per Share

 

PROG Internal

 

Source: View Original Filing on SEC EDGAR

FAQ

How did PROG Holdings (PRG) perform financially in Q1 2026?

PROG Holdings reported Q1 2026 revenue from continuing operations of $742.7 million, up 11.1% year over year. Net earnings from continuing operations were $36.2 million, and adjusted EBITDA rose 29.2% to $90.3 million, reflecting stronger profitability.

What were PROG Holdings’ Q1 2026 earnings per share?

Diluted EPS from continuing operations in Q1 2026 was $0.89, up from $0.83 a year earlier. Non-GAAP diluted EPS from continuing operations was $1.24, a 37.8% increase from $0.90, driven by higher margins and contributions from Four and Purchasing Power.

How fast did Four Technologies grow for PROG Holdings (PRG) in Q1 2026?

Four’s Q1 2026 GMV was $280.0 million, up 133.6% year over year. Segment revenues reached $35.0 million, a 142.3% increase, while earnings before taxes climbed to $11.4 million, up 478.2% from the prior-year quarter.

What impact did Purchasing Power have on PROG Holdings’ Q1 2026 results?

Purchasing Power contributed Q1 2026 GMV of $132.7 million and revenues of $107.1 million. It posted a $7.5 million loss before taxes and adjusted EBITDA of $0.8 million, as integration and acquisition-related costs affected profitability.

What is PROG Holdings’ updated full-year 2026 outlook?

For 2026, PROG Holdings now expects total revenues from continuing operations of $3.0–$3.1 billion, adjusted EBITDA of $343–$370 million, diluted EPS of $3.68–$4.06, and non-GAAP diluted EPS of $4.40–$4.80, all higher than previous guidance ranges.

How leveraged is PROG Holdings after the Purchasing Power acquisition?

As of March 31, 2026, PROG Holdings reported $69.4 million of cash and $943.7 million of gross debt. The company has reduced net recourse debt by $210 million since acquiring Purchasing Power, resulting in a reported net leverage ratio of 2.0x.

How did Progressive Leasing perform for PROG Holdings in Q1 2026?

Progressive Leasing generated Q1 2026 GMV of $393.0 million, down 2.2% year over year, and revenues of $596.9 million, down 8.4%. Despite revenue pressure, earnings before taxes increased 6.9% to $52.0 million, and adjusted EBITDA rose 14.1% to $76.7 million.

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