PROG (NYSE:PRG) Posts Earnings Results, Beats Estimates By $0.24 EPS

PROG (NYSE:PRG) posted its quarterly earnings data on Wednesday. The fintech holding company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.24, FiscalAI reports. PROG had a net margin of 5.88% and a return on equity of 21.94%. The firm had revenue of $719.72 million during the quarter, compared to analysts’ expectations of $713.50 million. PROG updated its Q3 2026 guidance to 1.000-1.200 EPS and its FY 2026 guidance to 4.750-5.000 EPS.

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

• Q2 results exceeded expectations: Revenue reached $719.7 million, while adjusted EBITDA of $88.4 million and non-GAAP EPS of $1.19 surpassed the high end of guidance. Management raised its 2026 outlook to $3.025-$3.1 billion of revenue, $355-$375 million of adjusted EBITDA, and $4.75-$5.00 of non-GAAP EPS.
• Growth broadened across the ecosystem. Consolidated GMV rose 60% year over year; Progressive Leasing returned to 3.4% GMV growth, Four GMV more than doubled with 111% growth, and Purchasing Power delivered double-digit GMV growth.
• Four continued to scale profitably: Revenue increased 118% to $35.1 million and adjusted EBITDA reached $8.7 million, with nearly 80% growth in active shoppers and approximately 80% of GMV coming from Four+ subscribers.
• Consumer pressure remains a portfolio risk. Progressive Leasing write-offs rose to 8.4% of revenue and are expected to finish 2026 near the high end of the 6%-8% target range, reflecting inflation, higher gas prices, and pressure in furniture and appliance demand.
• Deleveraging enabled capital returns: Recourse debt fell by $50 million during the quarter, reducing net leverage to 1.7x, and the company resumed share repurchases by buying back 280,000 shares while continuing its quarterly dividend.

PROG Trading Down 7.0%

PROG stock traded down $3.15 during midday trading on Wednesday, hitting $41.93. 293,418 shares of the stock were exchanged, compared to its average volume of 513,055. The stock has a market capitalization of $1.68 billion, a PE ratio of 11.47 and a beta of 1.78. The company has a fifty day simple moving average of $40.61 and a two-hundred day simple moving average of $35.22. The company has a quick ratio of 2.41, a current ratio of 4.27 and a debt-to-equity ratio of 1.21. PROG has a 52 week low of $25.80 and a 52 week high of $47.73.

PROG Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th were paid a dividend of $0.14 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.56 annualized dividend and a yield of 1.3%. PROG’s dividend payout ratio (DPR) is presently 15.30%.

Trending Headlines about PROG

Here are the key news stories impacting PROG this week:

• Positive Sentiment: PROG reported second-quarter EPS of $1.19, surpassing the $0.95 consensus estimate by $0.24. Revenue was $719.72 million, also ahead of the $713.50 million consensus. MarketBeat quarterly earnings report
• Positive Sentiment: Management raised or reaffirmed a constructive full-year outlook, projecting 2026 EPS of $4.75 to $5.00 versus the $4.66 analyst consensus, and revenue of approximately $3.0 billion to $3.1 billion. PROG Holdings second-quarter results
• Positive Sentiment: The quarter included Purchasing Power, acquired on January 2, 2026, and management characterized performance as strong, with revenue toward the high end of its outlook and adjusted EBITDA and non-GAAP results benefiting from the business combination. PROG Holdings second-quarter results
• Neutral Sentiment: Third-quarter EPS guidance of $1.00 to $1.20 brackets the $1.05 consensus estimate, suggesting results could be broadly in line with expectations.
• Negative Sentiment: Third-quarter revenue guidance of $715 million to $750 million has a midpoint below the $746.7 million consensus, potentially signaling slower near-term growth than analysts anticipated.
• Negative Sentiment: Investors continue to monitor consumer financial pressure and write-offs, risks previously identified ahead of the earnings release, even as leasing demand and Four Technologies growth improve. Zacks PROG Holdings earnings preview

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on PRG. Weiss Ratings raised PROG from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, June 24th. Zacks Research cut shares of PROG from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Loop Capital cut shares of PROG from a “buy” rating to a “hold” rating and set a $48.00 target price for the company. in a research report on Wednesday, July 1st. B. Riley Financial reissued a “buy” rating on shares of PROG in a research note on Thursday, April 30th. Finally, Jefferies Financial Group upgraded PROG from a “hold” rating to a “buy” rating and raised their price target for the stock from $33.00 to $60.00 in a research report on Wednesday, July 8th. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $47.36.

Hedge Funds Weigh In On PROG

Hedge funds and other institutional investors have recently made changes to their positions in the company. Quarry LP increased its position in shares of PROG by 82.8% in the 4th quarter. Quarry LP now owns 1,117 shares of the fintech holding company’s stock valued at $33,000 after buying an additional 506 shares in the last quarter. WealthCollab LLC boosted its holdings in shares of PROG by 28.1% in the third quarter. WealthCollab LLC now owns 2,680 shares of the fintech holding company’s stock valued at $87,000 after buying an additional 588 shares during the period. Swiss National Bank boosted its holdings in shares of PROG by 0.9% in the third quarter. Swiss National Bank now owns 78,200 shares of the fintech holding company’s stock valued at $2,531,000 after buying an additional 700 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of PROG by 5.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,363 shares of the fintech holding company’s stock worth $648,000 after acquiring an additional 1,162 shares in the last quarter. Finally, Vident Advisory LLC boosted its position in shares of PROG by 7.7% during the third quarter. Vident Advisory LLC now owns 18,880 shares of the fintech holding company’s stock worth $611,000 after buying an additional 1,349 shares during the period. 97.92% of the stock is owned by institutional investors.

About PROG

PROG Holdings, Inc, 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.