Aaron’s (NYSE:PRG) Announces Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Aaron’s (NYSE:PRG) issued its earnings results on Wednesday. The company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.60 by $0.14, FiscalAI reports. The firm had revenue of $525.36 million during the quarter, compared to the consensus estimate of $581.82 million. Aaron’s had a net margin of 5.97% and a return on equity of 20.99%. The business’s quarterly revenue was down 5.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.80 earnings per share. Aaron’s updated its Q1 2026 guidance to 0.700-0.900 EPS and its FY 2026 guidance to 4.000-4.450 EPS.

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

• PROG beat guidance for 2025 with consolidated adjusted EBITDA of $269 million and non?GAAP EPS of $3.51, delivering strong free cash flow to invest and return capital.
• Progressive Leasing faced material headwinds—leasing GMV fell ~8.6% y/y and the leased portfolio started 2026 down 9.4% after intentional tightening and the Big Lots bankruptcy, pressuring near?term revenue.
• Four Technologies (BNPL) scaled rapidly—~144% GMV growth in 2025 with improved unit economics and roughly $10M adjusted EBITDA, signaling strong growth and margin expansion potential.
• The Jan 2026 acquisition of Purchasing Power adds projected 2026 revenue of $680–$730M and $50–$60M adjusted EBITDA but raised net leverage to ~2.5x, creating integration upside alongside near?term leverage risk.
• Technology and DTC progress is accelerating—PROG Marketplace nearly doubled to ~$82M GMV, e?commerce comprised ~30% of Q4 leasing GMV, and AI/modernization (e.g., Piper Plus, faster decisioning) is improving efficiency and conversion.

Aaron’s Trading Up 12.2%

Aaron’s stock opened at $40.54 on Friday. The company has a market cap of $1.60 billion, a price-to-earnings ratio of 11.26 and a beta of 1.73. The firm has a 50-day moving average of $32.11 and a 200-day moving average of $31.82. The company has a debt-to-equity ratio of 0.80, a current ratio of 4.71 and a quick ratio of 2.65. Aaron’s has a one year low of $23.50 and a one year high of $41.14.

Wall Street Analysts Forecast Growth

PRG has been the topic of several research analyst reports. BTIG Research raised Aaron’s from a “sell” rating to a “neutral” rating and set a $31.00 price objective on the stock in a research note on Friday, November 21st. Weiss Ratings reiterated a “hold (c)” rating on shares of Aaron’s in a report on Thursday, January 22nd. B. Riley Financial initiated coverage on Aaron’s in a research note on Tuesday, December 16th. They set a “buy” rating and a $50.00 target price for the company. Wall Street Zen lowered shares of Aaron’s from a “buy” rating to a “hold” rating in a research note on Saturday, January 10th. Finally, TD Cowen lowered their price objective on shares of Aaron’s from $41.00 to $38.00 and set a “buy” rating for the company in a research report on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $38.83.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. boosted its holdings in shares of Aaron’s by 436.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,824,091 shares of the company’s stock valued at $53,792,000 after buying an additional 1,483,751 shares during the last quarter. State Street Corp lifted its stake in Aaron’s by 5.6% in the fourth quarter. State Street Corp now owns 1,679,355 shares of the company’s stock valued at $49,524,000 after acquiring an additional 89,035 shares during the last quarter. UBS Group AG lifted its stake in Aaron’s by 102.4% in the third quarter. UBS Group AG now owns 823,663 shares of the company’s stock valued at $26,654,000 after acquiring an additional 416,658 shares during the last quarter. Ameriprise Financial Inc. increased its stake in shares of Aaron’s by 1.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 756,270 shares of the company’s stock worth $24,473,000 after purchasing an additional 8,552 shares during the last quarter. Finally, First Trust Advisors LP increased its stake in shares of Aaron’s by 451.1% during the 3rd quarter. First Trust Advisors LP now owns 702,781 shares of the company’s stock worth $22,742,000 after purchasing an additional 575,255 shares during 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.