Aaron’s (NYSE:PRG) Posts Earnings Results, Beats Estimates By $0.46 EPS

Aaron’s (NYSE:PRG) posted its quarterly earnings data on Wednesday. The company reported $1.24 EPS for the quarter, topping analysts’ consensus estimates of $0.78 by $0.46, FiscalAI reports. The company had revenue of $742.67 million for the quarter, compared to analyst estimates of $726.96 million. Aaron’s had a return on equity of 20.99% and a net margin of 5.97%.The firm’s quarterly revenue was up 11.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.90 earnings per share. Aaron’s updated its Q2 2026 guidance to 1.050-1.050 EPS.

Here are the key takeaways from Aaron’s’ conference call:

• Delivered a strong Q1, beating guidance with consolidated revenue of $743 million, Adjusted EBITDA of $90.3 million, Non-GAAP EPS of $1.24, and consolidated GMV up 54% year?over?year.
• Four continued rapid, profitable scaling—Q1 GMV of $280 million (+134% YoY), revenue up 142%, and Adjusted EBITDA of $12.9 million with a 37% margin, showing improving unit economics.
• Progressive Leasing showed sequential improvement (January down high single digits ? March up low single digits) but Q1 GMV was down 2.2% YoY and portfolio size remained down ~5.4% YoY, even as gross margin expanded ~210 bps and write?offs stayed within the 6%–8% target.
• Purchasing Power delivered modest momentum with Q1 GMV +10.3% and revenue of $107.1 million, producing near?breakeven Adjusted EBITDA (~$0.8M) while integration and employer distribution remain early?stage growth drivers.
• Balance sheet progress: paid down $210 million of recourse debt post?acquisition, exiting Q1 at ~2.0x net leverage (within the 1.5–2.0x target), raised the quarterly dividend, and prioritized deleveraging, M&A, and potential buybacks.

Aaron’s Trading Up 24.0%

Shares of PRG stock opened at $35.82 on Thursday. The company has a market cap of $1.42 billion, a P/E ratio of 9.95 and a beta of 1.81. The stock has a 50 day simple moving average of $31.25 and a two-hundred day simple moving average of $30.92. The company has a debt-to-equity ratio of 0.80, a quick ratio of 2.32 and a current ratio of 4.71. Aaron’s has a fifty-two week low of $25.58 and a fifty-two week high of $41.14.

Aaron’s Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Thursday, March 12th were issued a $0.14 dividend. The ex-dividend date was Thursday, March 12th. This is an increase from Aaron’s’s previous quarterly dividend of $0.13. This represents a $0.56 dividend on an annualized basis and a yield of 1.6%. Aaron’s’s dividend payout ratio is presently 15.56%.

Analyst Ratings Changes

A number of equities analysts recently commented on PRG shares. Zacks Research lowered Aaron’s from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 20th. TD Cowen lifted their price objective on Aaron’s from $42.00 to $43.00 and gave the stock a “buy” rating in a research note on Wednesday, March 11th. Wall Street Zen raised Aaron’s from a “hold” rating to a “buy” rating in a research note on Saturday, February 21st. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Aaron’s in a report on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $41.33.

Institutional Investors Weigh In On Aaron’s

A number of hedge funds have recently added to or reduced their stakes in the business. Quarry LP increased its holdings in Aaron’s by 82.8% in the fourth quarter. Quarry LP now owns 1,117 shares of the company’s stock worth $33,000 after purchasing an additional 506 shares in the last quarter. WealthCollab LLC increased its holdings in Aaron’s by 28.1% in the third quarter. WealthCollab LLC now owns 2,680 shares of the company’s stock worth $87,000 after purchasing an additional 588 shares in the last quarter. Swiss National Bank increased its holdings in shares of Aaron’s by 0.9% during the third quarter. Swiss National Bank now owns 78,200 shares of the company’s stock valued at $2,531,000 after acquiring an additional 700 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Aaron’s by 5.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,363 shares of the company’s stock valued at $648,000 after acquiring an additional 1,162 shares in the last quarter. Finally, Vident Advisory LLC increased its holdings in shares of Aaron’s by 7.7% during the third quarter. Vident Advisory LLC now owns 18,880 shares of the company’s stock valued at $611,000 after acquiring an additional 1,349 shares in the last quarter. 97.92% of the stock is currently owned by institutional investors.

About Aaron’s

PROG Holdings, Inc (NYSE: PRG), formerly known as Aaron’s, is a North American provider of lease-to-own and consumer finance solutions. The company operates through two primary segments: Aaron’s Business Solutions and Progressive Financial Services. Through Aaron’s Business Solutions, PROG offers customers access to furniture, electronics, home appliances and technology products via lease ownership arrangements, serving both individual consumers and small businesses.

The Progressive Financial Services segment provides lease-purchase and retail point-of-sale financing programs to customers with limited credit histories.