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PROG Holdings (NYSE: PRG) raises 2026 outlook on strong Q2 and deleveraging

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

Rhea-AI Filing Summary

PROG Holdings, Inc. reported second‑quarter 2026 revenue from continuing operations of $719.7 million, up 22.3% year over year, with consolidated gross merchandise volume of $902.0 million, up 60.1%. Net earnings from continuing operations were $37.4 million, while adjusted EBITDA reached $88.4 million (12.3% margin) and non‑GAAP diluted EPS rose to $1.19 from $1.00.

Progressive Leasing delivered modest GMV growth but lower revenue, while Four and Purchasing Power produced triple‑digit and double‑digit GMV gains, respectively. The company ended the quarter with a net leverage ratio of 1.7x, having reduced total debt by $304.9 million since acquiring Purchasing Power, repurchased $10.2 million of stock, and paid a $0.14 dividend. Management raised full‑year 2026 revenue, adjusted EBITDA, and non‑GAAP EPS outlooks and issued Q3 2026 guidance. Separately, director Douglas C. Curling passed away on July 25, 2026, and the Board size was reduced from ten to nine members.

Positive

  • Strong top-line and GMV growth: Q2 2026 revenue from continuing operations grew 22.3% to $719.7 million, while consolidated GMV increased 60.1% to $902.0 million, driven by Four and the Purchasing Power acquisition.
  • Margin and non-GAAP earnings expansion: Adjusted EBITDA rose to $88.4 million, up 22.8%, with margin at 12.3%, and non‑GAAP diluted EPS from continuing operations increased to $1.19 from $1.00.
  • Rapid growth at Four and solid Purchasing Power contribution: Four’s GMV grew 110.6% and revenues 118.2%, while Purchasing Power delivered $130.4 million in revenue and $10.6 million in adjusted EBITDA in the quarter.
  • Deleveraging and capital returns: Since acquiring Purchasing Power, the company has reduced total debt by $304.9 million, reached a net leverage ratio of 1.7x, repurchased $10.2 million of stock, and paid a quarterly dividend of $0.14 per share.
  • Raised 2026 outlook: Full‑year 2026 guidance now calls for revenue from continuing operations of $3.025–$3.10 billion, adjusted EBITDA of $355–$375 million, and non‑GAAP diluted EPS of $4.75–$5.00, all higher than prior ranges.

Negative

  • None.

Filing Explained

At June 30, PROG reported $85.2 million in cash against $893.7 million in gross debt; its board now has nine members.

This Form 8-K reports specified material events and records that PROG Holdings reduced its Board from ten members to nine, effective immediately on July 27, 2026, after director Douglas C. Curling died on July 25, 2026.

The board-size change is complete as disclosed; it changes the number of directors, with no accompanying change to common shares reported in this filing.

At June 30, 2026, the company reported $85.2 million of cash and $893.7 million of gross debt, providing the balance-sheet amounts underlying its financing position.

The earnings supplement separately defines the 1.7-times net leverage ratio using gross recourse debt less cash divided by trailing-twelve-month adjusted EBITDA; it reports gross recourse debt of $600 million, excluding Purchasing Power securitization funding debt.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 revenue from continuing operations $719.7 million Three months ended June 30, 2026; up 22.3% year over year
Q2 2026 net earnings from continuing operations $37.4 million Three months ended June 30, 2026
Q2 2026 adjusted EBITDA $88.4 million Three months ended June 30, 2026; 12.3% of revenues
Q2 2026 non-GAAP diluted EPS $1.19 From continuing operations; up 19.0% vs Q2 2025
Consolidated GMV $902.0 million Q2 2026; up 60.1% year over year
Net leverage ratio 1.7x End of Q2 2026 after Purchasing Power acquisition
Debt reduction since Purchasing Power acquisition $304.9 million Cumulative total debt reduction as of Q2 2026
Share repurchases in Q2 2026 $10.2 million Stock buybacks at an average price of $36.37 per share
Gross Merchandise Volume financial
"Consolidated GMV of $902.0 million, up 60.1%"
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.
Adjusted EBITDA financial
"Adjusted EBITDA from continuing operations of $88.4 million, up 22.8%"
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.
Non-GAAP diluted earnings per share financial
"Non-GAAP Diluted EPS from continuing operations of $1.19, up 19.0%"
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
"Net leverage ratio ended the quarter at 1.7x"
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.
variable interest entities financial
"receivables included $381.4 million of contractual amounts outstanding of consolidated VIEs"
A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.
asset-backed secured borrowings financial
"interest expense on Purchasing Power's asset-backed secured borrowings"
Revenue from continuing operations (Q2 2026) $719.7 million up 22.3% vs Q2 2025
Net earnings from continuing operations (Q2 2026) $37.4 million down 0.5% vs Q2 2025
Adjusted EBITDA (Q2 2026) $88.4 million up 22.8% vs Q2 2025
Non-GAAP diluted EPS from continuing operations (Q2 2026) $1.19 up 19.0% vs $1.00 in Q2 2025
Guidance

For full-year 2026, the company now expects revenue from continuing operations of $3.025–$3.10 billion, adjusted EBITDA of $355–$375 million, and non-GAAP diluted EPS from continuing operations of $4.75–$5.00; Q3 2026 non-GAAP EPS is guided to $1.00–$1.20.

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FAQ

How did PROG Holdings (PRG) perform financially in Q2 2026?
PROG Holdings reported $719.7 million in revenue from continuing operations in Q2 2026, up 22.3% year over year. Net earnings from continuing operations were $37.4 million, with adjusted EBITDA of $88.4 million and non‑GAAP diluted EPS of $1.19.

What were PROG Holdings (PRG) Q2 2026 GMV and segment highlights?
Consolidated GMV reached $902.0 million, up 60.1% year over year. Progressive Leasing GMV grew 3.4%, Four’s GMV rose 110.6% to $315.1 million, and Purchasing Power’s GMV was $158.8 million, up 15.2% versus its Q2 2025 standalone results.

How is PROG Holdings (PRG) managing leverage and capital allocation?
The company ended Q2 2026 with a net leverage ratio of about 1.7x and gross debt of $893.7 million. Since acquiring Purchasing Power, it has reduced total debt by $304.9 million, repurchased $10.2 million of stock, and paid a quarterly dividend of $0.14 per share.

What is PROG Holdings’ (PRG) revised full-year 2026 outlook?
For 2026, management now projects total revenue from continuing operations of $3.025–$3.10 billion, adjusted EBITDA of $355–$375 million, and non‑GAAP diluted EPS from continuing operations of $4.75–$5.00, raising both earnings and revenue ranges versus prior guidance.

What guidance did PROG Holdings (PRG) give for Q3 2026?
For Q3 2026, the company forecasts revenue from continuing operations of $715–$750 million, net earnings of $36.0–$42.5 million, adjusted EBITDA of $79–$89 million, diluted EPS of $0.86–$1.06, and non‑GAAP diluted EPS of $1.00–$1.20.

What board and governance event did PROG Holdings (PRG) disclose?
The company announced that director Douglas C. Curling passed away on July 25, 2026. In response, on July 27, 2026, the Board reduced its size from ten members to nine, effective immediately, and expressed condolences and appreciation for his service.
false000180883400018088342026-07-292026-07-29

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): July 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 July 29, 2026, PROG Holdings, Inc. (the "Company") issued a press release (the "Press Release") announcing its financial results for the second quarter ended June 30, 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 8.01.    OTHER EVENTS

On July 29, 2026, the Company announced with deep sadness that Douglas C. Curling, a member of the Company’s Board of Directors (the “Board”), passed away unexpectedly on July 25, 2026.

In light of Mr. Curling’s passing, on July 27, 2026, the Board reduced the size of the Board from ten members to nine members, effective immediately.

The Board, management team, and employees of the Company extend their deepest condolences to Mr. Curling’s family and express profound gratitude for his leadership and more than a decade of dedicated service to the Company.

ITEM 9.01.     FINANCIAL STATEMENTS AND EXHIBITS

(d)    Exhibits:

Exhibit No.
Description
99.1
Press release, dated July 29, 2026.
99.2
PROG Holdings, Inc. Earnings Supplement Presentation, dated July 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:
July 29, 2026
Brian Garner
Chief Financial Officer



Exhibit 99.1


PROG Holdings Reports Second Quarter 2026 Results
•Consolidated revenues from continuing operations of $719.7 million, up 22.3%; Net earnings from continuing operations of $37.4 million
•Adjusted EBITDA from continuing operations of $88.4 million, up 22.8%
•Diluted EPS from continuing operations of $0.92; Non-GAAP Diluted EPS from continuing operations of $1.19, up 19.0%
•Consolidated GMV of $902.0 million, up 60.1%
•Net leverage ratio ended the quarter at 1.7x

SALT LAKE CITY, July 29, 2026 - PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Four Technologies, MoneyApp and Purchasing Power, today announced financial results for the second quarter ended June 30, 2026, which includes the results of Purchasing Power since January 2, 2026, the date the Company acquired Purchasing Power.
"PROG Holdings delivered a strong second quarter, with revenue toward the higher end of our outlook and both adjusted EBITDA and Non-GAAP EPS coming in above the top end of our April outlook ranges, a reflection of disciplined execution across the business," said PROG Holdings Chairman, President and CEO Steve Michaels. "Every product in our ecosystem contributed: consolidated GMV grew 60% year-over-year, Progressive Leasing returned to positive GMV growth of 3.4% with adjusted EBITDA margin at 12.7%, Four delivered its eleventh consecutive quarter of triple-digit GMV growth, and Purchasing Power's GMV grew double-digits."
"Equally important was our continued strengthening of the balance sheet. We used our strong cash flow to pay down debt, bringing our net leverage ratio to approximately 1.7 times, down from about 2.5 times right after the acquisition of Purchasing Power, and comfortably within our targeted range of 1.5 to 2.0 times. This deleveraging gave us the confidence to resume share repurchases during the quarter."
"Reflecting our second-quarter outperformance and the momentum we see across our product ecosystem, we are raising our full-year 2026 outlook. Our performance is a testament to the resilience of our platform and the discipline with which we run it," concluded Michaels.


Consolidated Results
Consolidated revenues for the second quarter of 2026 were $719.7 million, an increase of 22.3% from the same period in 2025.
Consolidated net earnings from continuing operations for the quarter were $37.4 million, compared with $37.6 million in the prior year period. The effective income tax rate was 26.4% in the second quarter of 2026, compared to 26.5% in the same period in the prior year. Adjusted EBITDA from continuing operations for the quarter was $88.4 million, or 12.3% of revenues, compared with $72.0 million, or 12.2% of revenues for the same period in 2025.
Diluted earnings per share from continuing operations for the second quarter of 2026 were $0.92, compared with $0.93 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were up 19.0% at $1.19 in the second quarter of 2026, compared with $1.00 for the same period in 2025.
Progressive Leasing Results
Progressive Leasing's second quarter GMV of $428.1 million was up 3.4% compared to the same period in 2025. Revenues were $550.6 million, down 3.4% from the prior year. The provision for lease merchandise write-offs for the quarter was 8.4% of leasing revenues. Earnings before taxes for the second quarter of 2026 were $45.4 million, down 11.9% from the second quarter of 2025. Adjusted EBITDA was $69.9 million, up 0.3% from the second quarter of 2025.
Four Results
Four's GMV for the second quarter of 2026 was $315.1 million, an increase of 110.6% compared to the same period in the prior year. Revenues were $35.1 million, up 118.2% from the year ago period. Four's earnings before taxes for the second quarter of 2026 were $7.1 million, up 139.9% from the second quarter of 2025. Adjusted EBITDA was $8.7 million, up 111.2% from the second quarter of 2025.
Purchasing Power Results
The Company acquired Purchasing Power on January 2, 2026. Purchasing Power's GMV, which is defined as the total value of merchandise and services purchased and delivered to customers through its platform, was $158.8 million, up 15.2% from the second quarter of 2025 on a standalone basis.


Revenues were $130.4 million in the second quarter of 2026. Loss before taxes was $0.3 million and adjusted EBITDA was $10.6 million for the second quarter of 2026.
Liquidity and Capital Allocation
PROG Holdings ended the second quarter of 2026 with cash of $85.2 million and gross debt of $893.7 million. During the quarter, the Company repaid $50.0 million of debt related to the acquisition of Purchasing Power. Since the acquisition of Purchasing Power, the Company has reduced its total debt by $304.9 million. The Company repurchased $10.2 million of its stock in the quarter at an average price of $36.37 per share, leaving $299.4 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 third quarter of 2026. This 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.


Revised 2026 outlook
Previous 2026 outlook
(In thousands, except per share amounts)LowHigh
Low
High
PROG Holdings - Total revenues from continuing operations
$3,025,000 $3,100,000 $3,000,000 $3,100,000 
PROG Holdings - Net earnings from continuing operations
155,000 164,500 150,500 166,000 
PROG Holdings - Adjusted EBITDA from continuing operations
355,000 375,000 343,000 370,000 
PROG Holdings - Diluted EPS from continuing operations
3.82 4.06 3.68 4.06 
PROG Holdings - Diluted non-GAAP EPS from continuing operations
4.75 5.00 4.40 4.80 
Progressive Leasing - Total revenues
2,247,500 2,285,000 2,227,500 2,285,000 
Progressive Leasing - Earnings before taxes
188,500 193,000 191,000 198,500 
Progressive Leasing - Adjusted EBITDA272,500 279,500 269,500 279,500 
Purchasing Power - Total revenues
620,000 640,000 620,000 640,000 
Purchasing Power - Earnings before taxes
17,000 21,500 14,500 22,000 
Purchasing Power - Adjusted EBITDA
54,000 60,000 50,000 60,000 
Four - Total revenues
145,000 157,000 140,000 157,000 
Four - Earnings before taxes
22,000 25,000 16,500 20,500 
Four - Adjusted EBITDA
30,000 34,000 25,000 29,000 
Other - Total revenues
12,500 18,000 12,500 18,000 
Other - Loss before taxes
(13,500)(10,500)(14,500)(12,000)
Other - Adjusted EBITDA(1,500)1,500 (1,500)1,500 
Three months ended
September 30, 2026 outlook
(In thousands, except per share amounts)LowHigh
PROG Holdings - Total revenues from continuing operations
$715,000$750,000
PROG Holdings - Net earnings from continuing operations
36,00042,500
PROG Holdings - Adjusted EBITDA from continuing operations
79,00089,000
PROG Holdings - Diluted EPS from continuing operations
0.861.06
PROG Holdings - Diluted non-GAAP EPS from continuing operations
1.001.20


Conference Call and Webcast
The Company has scheduled a live webcast and conference call for Wednesday, July 29, 2026, at 8:30 A.M. ET to discuss its financial results for the second 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," "targeted," and "outlook," 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) the strength of our balance sheet; (ii) our net leverage ratio; and (iii) our revised full year 2026 outlook and the guidance we provide for the third quarter of 2026. 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
(Unaudited) 
 Six months ended
June 30,June 30,
2026202520262025
Revenues
Lease revenues and fees$549,830 $569,674 $1,146,694 $1,221,231 
Product and service revenues128,507 — 234,913 — 
Other revenue41,378 18,829 80,782 35,700 
719,715 588,503 1,462,389 1,256,931 
Costs and expenses
Depreciation of lease merchandise364,311 385,107 773,321 845,550 
Cost of product sales75,702 — 138,208 — 
Provision for lease merchandise write-offs46,499 42,633 90,150 90,651 
Operating expenses143,417 93,409 293,617 191,533 
Provision for credit losses30,667 8,043 54,834 13,544 
660,596 529,192 1,350,130 1,141,278 
Gain on sale of lease receivables4,701 — 11,158 — 
Gain on change in fair value of receivables
1,810 — 7,522 — 
Operating profit65,630 59,311 130,939 115,653 
Interest expense(15,217)(9,794)(33,606)(19,757)
Interest income394 1,645 1,037 2,518 
Earnings from continuing operations before income tax expense50,807 51,162 98,370 98,414 
Income tax expense13,429 13,581 24,774 26,243 
Net earnings from continuing operations37,378 37,581 73,596 72,171 
(Loss) earnings from discontinued operations, net of tax(349)902 (513)1,030 
Net earnings$37,029 $38,483 $73,083 $73,201 
Basic earnings per share
Continuing operations$0.93 $0.94 $1.84 $1.78 
Discontinued operations(0.01)0.02 (0.01)0.03 
Total basic earnings per share$0.92 $0.96 $1.83 $1.81 
Diluted earnings per share
Continuing operations$0.92 $0.93 $1.81 $1.75 
Discontinued operations(0.01)0.02 (0.01)0.03 
Total diluted earnings per share$0.91 $0.95 $1.80 $1.78 
Cash dividend declared per share
Common stock$0.14 $0.13 $0.28 $0.26 
Weighted average shares outstanding
Basic40,177 40,130 40,038 40,484 
Diluted
40,734 40,559 40,772 41,203 

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

(Unaudited)
June 30,
2026		December 31,
2025
Assets
Cash and cash equivalents$85,201 $308,774 
Restricted cash7,168 — 
Receivables (net of allowances and unearned interest income of $94,401 in 2026 and $68,806 in 2025; includes $106,069 recorded at fair value in 2026)1
374,522 74,228 
Other receivables (net of allowances and unearned interest income of $7,137 in 2026 and $— in 2025; includes $10,063 recorded at fair value in 2026)1
39,777 — 
Lease merchandise (net of accumulated depreciation and allowances of $429,925 in 2026 and $407,104 in 2025)
531,071 609,009 
Loans receivable (net of allowances and unamortized fees of $19,808 in 2026 and $18,246 in 2025)
74,312 90,648 
Property and equipment, net
24,414 19,526 
Goodwill and other intangibles, net763,089 353,835 
Income tax receivable25,150 47,894 
Deferred income tax assets18,852 19,561 
Prepaid expenses and other assets93,827 73,383 
Assets of discontinued operations10,683 13,550 
Total assets$2,048,066 $1,610,408 
Liabilities and shareholders' equity
Accounts payable and accrued expenses$148,668 $96,471 
Debt, net1
887,064 594,861 
Deferred income tax liabilities157,177 121,152 
Other liabilities47,012 44,676 
Liabilities of discontinued operations2,805 6,831 
Total liabilities
1,242,726 863,991 
Shareholders' equity
Common stock, par value $0.50 per share: authorized: 225,000,000 shares at June 30, 2026 and December 31, 2025; shares issued: 82,078,654 at June 30, 2026 and December 31, 2025
41,039 41,039 
Additional paid-in capital357,133 363,583 
Retained earnings1,656,044 1,594,685 
2,054,216 1,999,307 
Less: treasury shares at cost
Common stock: 42,247,309 shares at June 30, 2026 and 42,502,844 at December 31, 2025
(1,248,876)(1,252,890)
Total shareholders' equity
805,340 746,417 
Total liabilities and shareholders' equity
$2,048,066 $1,610,408 
1 As of June 30, 2026 receivables included $381.4 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)
(Unaudited)
Six months ended June 30,
20262025
Operating activities
Net earnings$73,083 $73,201 
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation of lease merchandise773,321 845,550 
Other depreciation and amortization25,208 12,111 
Provisions for accounts receivable and credit losses
213,345 198,650 
Stock-based compensation16,842 14,536 
Gain on change in fair value of receivables
(7,522)— 
Deferred income taxes17,746 (20,049)
Gain on sale of receivables(11,706)— 
Non-cash lease expense(1,284)(1,642)
Other changes, net1,513 (943)
Changes in operating assets and liabilities, net of effects of the acquisition:
Additions to lease merchandise(814,049)(784,951)
Book value of lease merchandise sold or disposed118,665 93,340 
Accounts receivable(109,136)(147,179)
Prepaid expenses and other assets(1,989)5,480 
Income tax receivable and payable22,722 1,749 
Accounts payable and accrued expenses(37,179)(4,620)
Customer deposits and advance payments(1,644)(5,413)
Cash provided by operating activities277,936 279,820 
Investing activities
Investments in loans receivable(599,515)(370,099)
Proceeds from loans receivable592,456 339,206 
Funding of other receivables(45,919)— 
Collections from other receivables38,565 — 
Purchases of property and equipment(8,194)(3,896)
Proceeds from sale of property and equipment234 — 
Acquisition of business, net of cash acquired(391,845)— 
Cash used in investing activities(414,218)(34,789)
Financing activities
Proceeds from debt546,178 — 
Repayments on debt(591,108)(50,000)
Dividends paid(11,218)(10,443)
Acquisition of treasury stock(10,185)(51,775)
Issuance of stock under stock option and employee purchase plans1,135 1,028 
Cash paid for shares withheld for employee taxes(10,297)(7,385)
Debt issuance costs(4,628)(84)
Cash used in financing activities(80,123)(118,659)
(Decrease) increase in cash, cash equivalents and restricted cash
(216,405)126,372 
Cash, cash equivalents and restricted cash at beginning of period308,774 95,655 
Cash, cash equivalents and restricted cash at end of period$92,369 $222,027 
Net cash (received) paid during the period:
Interest$31,774 $18,795 
Income taxes$(15,643)$45,044 

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

(Unaudited)
Three months ended
June 30, 2026
Progressive LeasingPurchasing PowerFourOther
Consolidated total
Lease revenues and fees
$549,830 $— $— $— $549,830 
Product and service revenues
— 128,507 — — 128,507 
Other revenue724 1,877 35,085 3,692 41,378 
Total revenues$550,554 $130,384 $35,085 $3,692 $719,715 

(Unaudited)
Three months ended
June 30, 2025
Progressive LeasingPurchasing PowerFourOther
Consolidated total
Lease revenues and fees
$569,674 $— $— $— $569,674 
Product and service revenues
— — — — — 
Other revenue— — 16,076 2,753 18,829 
Total revenues
$569,674 $— $16,076 $2,753 $588,503 

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

(Unaudited)
Six months ended
June 30, 2026
Progressive LeasingPurchasing Power
Four
OtherConsolidated total
Lease revenues and fees
$1,146,694 $— $— $— $1,146,694 
Product and service revenues
— 234,913 — — 234,913 
Other revenue724 2,606 70,052 7,400 80,782 
Total revenues
$1,147,418 $237,519 $70,052 $7,400 $1,462,389 

(Unaudited)
Six months ended
June 30, 2025
Progressive LeasingPurchasing Power
Four
OtherConsolidated total
Lease revenues and fees$1,221,231 $— $— $— $1,221,231 
Product and service revenues— — — — — 
Other revenue— — 30,505 5,195 35,700 
Total revenues$1,221,231 $— $30,505 $5,195 $1,256,931 

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

(Unaudited)
Three months ended June 30,
Change
20262025
$
%
Progressive Leasing$428,116 $413,872 $14,244 3.4 %
Purchasing Power
158,794 — 158,794 nmf
Four
315,107 149,632 165,475 110.6 
Total GMV
$902,017 $563,504 $338,513 60.1 %
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 third quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction-related costs, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, 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 and six months ended June 30, 2026 exclude intangible amortization expense, transaction and integration costs, restructuring costs, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, 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 and six months ended June 30, 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 on non-asset-backed security borrowings, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the full year and third quarter 2026 outlook also excludes stock-based compensation expense, transaction-related costs for the acquisition of Purchasing Power, restructuring charges, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, and the operations of Vive. Adjusted EBITDA for the full year and third quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three and six months ended June 30, 2026 also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, and transaction and integration costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three and six months ended June 30, 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)(Unaudited)
Three months endedSix months ended
June 30,June 30,
2026202520262025
Net earnings from continuing operations
$37,378 $37,581 $73,596 $72,171 
Add: Intangible amortization expense
8,588 4,000 20,400 8,001 
Add: Restructuring expense
44 — 3,916 — 
Add: Costs related to the cybersecurity incident, net of insurance recoveries
— 127 9 109 
Add: Transaction and integration costs1,872 — 11,563 — 
Add: Legal settlement4,750 — 4,750 — 
Less: Gain on change in fair value of receivables— — (5,712)— 
Less: Tax impact of adjustments(1)
(3,966)(1,073)(9,081)(2,109)
Non-GAAP net earnings from continuing operations
$48,666 $40,635 $99,441 $78,172 
Diluted earnings per share from continuing operations
0.92 0.93 1.81 1.75 
Add: Intangible amortization expense
0.21 0.10 0.50 0.20 
Add: Restructuring expense
— — 0.10 — 
Add: Costs related to the cybersecurity incident, net of insurance recoveries
— — — — 
Add: Transaction and integration costs0.05 — 0.28 — 
Add: Legal settlement0.12 — 0.12 — 
Less: Gain on change in fair value of receivables— — (0.14)— 
Less: Tax impact of adjustments(1)
(0.10)(0.03)(0.22)(0.05)
Non-GAAP diluted earnings per share from continuing operations(2)
$1.19 $1.00 $2.44 $1.90 
Diluted weighted average shares outstanding
40,734 40,559 40,772 41,203 
(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
June 30, 2026
Progressive Leasing
Purchasing Power
Four
Other
Consolidated total
Net earnings from continuing operations
$37,378 
Income tax expense(1)
13,429 
Earnings (loss) from continuing operations before income tax expense
$45,430 $(291)$7,059 $(1,391)50,807 
Interest expense, net
9,238 259 1,140 74 10,711 
Depreciation1,653 225 26 566 2,470 
Amortization545 7,813 230 — 8,588 
EBITDA from continuing operations
56,866 8,006 8,455 (751)72,576 
Stock-based compensation
8,294 638 244 1 9,177 
Transaction and integration costs— 1,872 — — 1,872 
Restructuring expense
— 44 — — 44 
Legal settlement4,750 — — — 4,750 
Adjusted EBITDA from continuing operations
$69,910 $10,560 $8,699 $(750)$88,419 
(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

(Unaudited)
Three months ended
June 30, 2025
Progressive Leasing
Four
Other
Consolidated total
Net earnings from continuing operations
$37,581 
Income tax expense(1)
13,581 
Earnings (loss) from continuing operations before income tax expense
$51,546 $2,943 $(3,327)51,162 
Interest expense, net
6,424 945 780 8,149 
Depreciation1,301 19 530 1,850 
Amortization3,771 229 — 4,000 
EBITDA from continuing operations
63,042 4,136 (2,017)65,161 
Stock-based compensation
6,565 (18)193 6,740 
Costs related to the cybersecurity incident, net of insurance recoveries
127 — — 127 
Adjusted EBITDA from continuing operations
$69,734 $4,118 $(1,824)$72,028 
(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

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

(Unaudited)
Six months ended
June 30, 2026
Progressive LeasingPurchasing Power
Four
OtherConsolidated total
Net earnings from continuing operations$73,596 
Income tax expense(1)
24,774 
Earnings (loss) from continuing operations before income tax expense$97,390 $(7,791)$18,449 $(9,678)98,370 
Interest expense, net20,841 682 2,213 77 23,813 
Depreciation3,193 498 50 1,067 4,808 
Amortization4,316 15,625 459 — 20,400 
EBITDA from continuing operations125,740 9,014 21,171 (8,534)147,391 
Stock-based compensation15,581 1,052 433 (277)16,789 
Transaction and integration costs— 3,653 — 7,910 11,563 
Restructuring expense526 3,387 — 3 3,916 
Gain on change in fair value of receivables— (5,712)— — (5,712)
Costs related to the cybersecurity incident, net of insurance recoveries9 — — — 9 
Legal settlement4,750 — — — 4,750 
Adjusted EBITDA from continuing operations$146,606 $11,394 $21,604 $(898)$178,706 
(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

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

(Unaudited)
Six months ended
June 30, 2025
Progressive Leasing
Four
OtherConsolidated total
Net earnings from continuing operations$72,171 
Income tax benefit(1)
26,243 
Earnings (loss) from continuing operations before income tax benefit$100,171 $4,913 $(6,670)98,414 
Interest expense, net13,587 2,178 1,474 17,239 
Depreciation2,658 181 985 3,824 
Amortization7,542 459 — 8,001 
EBITDA from continuing operations123,958 7,731 (4,211)127,478 
Stock-based compensation12,872 674 784 14,330 
Restructuring expense— — — — 
Costs related to the cybersecurity incident, net of insurance recoveries109 — — 109 
Adjusted EBITDA from continuing operations$136,939 $8,405 $(3,427)$141,917 
(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
$155,000 - $164,500
Income tax expense(1)
59,000 - 61,000
Projected earnings (loss) from continuing operations before income tax expense
$188,500 - $193,000$17,000 - $21,500$22,000 - $25,000$(13,500) - $(10,500)214,000 - 225,500
Interest expense, net
38,0001,000 - 2,0005,500 - 6,00050045,000 - 47,500
Depreciation6,500 - 7,5001,0005003,00011,000 - 12,000
Amortization4,00032,0001,000—37,000
Projected EBITDA from continuing operations
237,000 - 242,50051,000 - 56,50029,000 - 32,500(10,000) - (7,000)307,000 - 322,000
Stock-based compensation
30,500 - 31,5002,000 - 2,5001,000 - 1,50050034,000 - 38,000
Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements5,000 - 5,5001,000—8,00014,000 - 15,000
Projected adjusted EBITDA from continuing operations
$272,500 - 279,500$54,000 - $60,000$30,000 - $34,000$(1,500) - $1,500$355,000 - $375,000
(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
$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
38,0001,500 - 2,0005,500
1,500 - 2,000
46,500 - 47,500
Depreciation6,500 - 7,5005,500 - 6,0005003,00015,500 - 17,000
Amortization4,00032,0001,000—37,000
Projected EBITDA from continuing operations
239,500 - 248,00053,500 - 62,00023,500 - 27,500(10,000) - (7,000)306,500 - 330,500
Stock-based compensation
29,500 - 30,5002,000 - 3,0001,50050033,500 - 35,500
Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements500 - 1,000(5,500) - (5,000)—8,0003,000 - 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 the Three Months Ended September 30, 2026 Outlook for Adjusted EBITDA
(In thousands)

Three months ended
September 30, 2026
Consolidated total
Estimated net earnings from continuing operations
$36,000 - $42,500
Income tax expense(1)
14,000 - 16,500
Projected earnings from continuing operations before income tax expense
50,000 - 59,000
Interest expense, net
9,500
Depreciation3,000 - 4,000
Amortization8,000
Projected EBITDA from continuing operations
70,500 - 80,500
Stock-based compensation
8,500
Restructuring / transaction costs / legal settlements-
Projected adjusted EBITDA from continuing operations
$79,000 - $89,000
(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
$3.82 $4.06 
Add: Projected intangible amortization expense
0.91 0.91 
Add: Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements0.35 0.37 
Subtract: Tax effect on non-GAAP adjustments(1)
(0.32)(0.33)
Projected non-GAAP diluted earnings per share from continuing operations(2)
$4.75 $5.00 
(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
$3.68 $4.06 
Add: Projected intangible amortization expense
0.90 0.90 
Add: Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements0.07 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 the Three Months Ended September 30, 2026 Outlook for Diluted
Earnings Per Share to Non-GAAP Diluted Earnings Per Share

Three months ended
September 30, 2026
LowHigh
Projected diluted earnings per share from continuing operations
$0.86 $1.06 
Add: Projected intangible amortization expense
0.20 0.20 
Add: Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements— — 
Subtract: Tax effect on non-GAAP adjustments(1)
(0.05)(0.05)
Projected non-GAAP diluted earnings per share from continuing operations(2)
$1.00 $1.20 
(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. Q2 2026 Earnings Supplement JULY 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," “targeted,” and "outlook," 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) the strength of our balance sheet; (ii) our net leverage ratio; (iii) our revised full year 2026 outlook and the guidance we provide for the third quarter of 2026. 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 Q2 2026 Headlines • Consolidated revenues from continuing operations of $719.7 million, up 22.3%; Net earnings from continuing operations of $37.4 million • Adjusted EBITDA from continuing operations of $88.4 million, up 22.8% • Diluted EPS from continuing operations of $0.92; Non- GAAP Diluted EPS from continuing operations of $1.19, up 19% • Consolidated GMV of $902.0 million, up 60.1% • Net leverage ratio ended the quarter at 1.7x

 

PROG Internal 4 "PROG Holdings delivered a strong second quarter, with revenue toward the higher end of our outlook and both adjusted EBITDA and Non-GAAP EPS coming in above the top end of our April outlook ranges, a reflection of disciplined execution across the business," said PROG Holdings Chairman, President and CEO Steve Michaels. "Every product in our ecosystem contributed: consolidated GMV grew 60% year-over-year, Progressive Leasing returned to positive GMV growth of 3.4% with adjusted EBITDA margin at 12.7%, Four delivered its eleventh consecutive quarter of triple-digit GMV growth, and Purchasing Power's GMV grew double-digits.” "Equally important was our continued strengthening of the balance sheet. We used our strong cash flow to pay down debt, bringing our net leverage ratio to approximately 1.7 times, down from about 2.5 times right after the acquisition of Purchasing Power, and comfortably within our targeted range of 1.5 to 2.0 times. This deleveraging gave us the confidence to resume share repurchases during the quarter.” "Reflecting our second-quarter outperformance and the momentum we see across our product ecosystem, we are raising our full-year 2026 outlook. Our performance is a testament to the resilience of our platform and the discipline with which we run it," concluded Michaels. Steve Michaels Chairman, President and CEO, PROG Holdings, Inc. PROG Holdings Executive Commentary

 

PROG Internal Adjusted EBITDA in millions 5 $588.5 $577.7 $574.6 $742.7 $719.7 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Non-GAAP EPSRevenue in millions 12.2% 11.4% 10.7% 12.2% 12.3% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Adjusted EBITDA as a % of PROG Holdings consolidated revenues PROG Holdings Q2 Consolidated Results (from continuing operations) $72.0 $65.7 $61.5 $90.3 $88.4 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 $1.00 $0.87 $0.74 $1.24 $1.19 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 • Consolidated revenue increased 22.3% 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 19%, primarily driven by addition of Purchasing Power and growth in Four. • The year-over-year increase in Consolidated Adjusted EBITDA was primarily a result of contribution from Purchasing Power, strong revenue and earnings at Four and higher yield on the Leasing portfolio. Q1/Q2 2026 consolidated results include Purchasing Power

 

PROG Internal Results

 

PROG Internal 7 2026 2025 Consolidated GMV $902.0 $563.5 60.1% Revenue $719.7 $588.5 22.3% GAAP Net Earnings $37.4 $37.6 -0.5% Adjusted Net Earnings $48.7 $40.6 19.8% Adjusted EBITDA $ $88.4 $72.0 22.8% Adjusted EBITDA % 12.3% 12.2% 5 bps GAAP Diluted Earnings Per Share* $0.92 $0.93 -1.1% Non-GAAP Diluted Earnings Per Share* $1.19 $1.00 18.8% Three Months Ended June 30 Change All dollar amounts in millions except EPS • GAAP to non-GAAP reconciliation tables available in appendix Q1/Q2 2026 consolidated results include Purchasing Power PROG Holdings Consolidated Q2 Results (from continuing operations)

 

PROG Internal 8 PROG Holdings Consolidated Results Cash and Cash Equivalents As of 6/30/2026 $85.2M Gross Recourse Debt1 As of 6/30/2026 $600M Net Leverage Ratio2 As of 6/30/2026 1.7x Operating Cash Flow From Continuing Operations Six Months Ended 6/30/2026 $283M 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 Revised 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.

 

PROG Internal 10 PROG Holdings Q3 2026 Outlook The Company is providing selective third 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 third quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction-related costs, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, 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 and six months ended June 30, 2026, exclude intangible amortization expense, transaction and integration costs, restructuring costs, legal settlement, 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 and six months ended June 30, 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, on non-asset-backed security borrowings, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the full year and third quarter 2026 outlook also excludes stock-based compensation expense, transaction-related costs for the acquisition of Purchasing Power, restructuring charges, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, and transaction and integration costs for the acquisition of Purchasing Power. Adjusted EBITDand the operations of Vive. Adjusted EBITDA for the full year and third quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three and six months ended June 30, 2026, also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, and transaction and integration costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three and six months ended June 30, 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 this 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 September 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 September 30, 2026 Outlook for Diluted Earnings Per Share to Non- GAAP Diluted Earnings Per Share

 

PROG Internal

 

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