Key Highlights

  • Consensus EPS of 1.09 compares with second-quarter non-GAAP diluted EPS of 1.19 and GAAP diluted EPS of 0.91.
  • Consensus revenue of USD 737.83 million compares with second-quarter revenue of USD 719,715 thousand, against USD 588,503 thousand.
  • Management guided 2026 revenue of USD 3.025 billion to USD 3.1 billion and non-GAAP EPS of 4.75 to 5.00.
  • Consolidated gross merchandise volume was USD 902.0 million, up 60.1%, with Four Technologies volume up 110.6%.

PROG Holdings (NYSE:PRG) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 1.09 on revenue of USD 737.83 million, and the company has a market capitalization of USD 1.17 billion.

PROG Holdings operates Progressive Leasing, Four Technologies and Purchasing Power, which offer lease-to-own and buy now, pay later options. Second-quarter revenue was USD 719,715 thousand against USD 588,503 thousand, and net income was USD 37,029 thousand against USD 38,483 thousand.

Estimates Against Second-Quarter Results and Raised Guidance

The EPS estimate of 1.09 is below the second-quarter non-GAAP diluted EPS of 1.19 and above the GAAP diluted EPS of 0.91, which compared with 0.95 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 737.83 million is above the USD 719,715 thousand reported.

Management guided 2026 revenue of USD 3.025 billion to USD 3.1 billion, adjusted EBITDA of USD 355 million to USD 375 million, raised from USD 343 million to USD 370 million, and non-GAAP EPS of 4.75 to 5.00, raised from 4.40 to 4.80.

What Management Guided and What It Left Open

Management said its customer is feeling the effects of prolonged inflation and recent gas price increases, and that pressure is most pronounced in bigger ticket categories such as furniture and appliances. The filing also notes elevated delinquencies on non-federal employee receivables at Purchasing Power in the second quarter.

Management left open the pace of Progressive Leasing volume and gave no third-quarter dollar guidance. Lease merchandise write-offs were 8.4% of Progressive Leasing revenue, which management tied to seasonal factors and cost pressures.

Progressive Leasing, Four and Purchasing Power Detail

Progressive Leasing volume was USD 428.1 million, up 3.4%, while revenue was USD 550.6 million, down 3.4%, with an adjusted EBITDA margin of 12.7%. E-commerce was 25.6% of Progressive Leasing volume against 20.9%.

Four Technologies volume was USD 315.1 million, revenue was USD 35.1 million, up 118.2%, and adjusted EBITDA was USD 8.7 million. Purchasing Power volume was USD 158.8 million, revenue was USD 130.4 million and adjusted EBITDA was USD 10.6 million.

Earnings Lines, Leverage and Liquidity

Consolidated adjusted EBITDA was USD 88.4 million, a 12.3% margin, and income before income taxes was USD 50,807 thousand against USD 51,162 thousand. A dividend of 0.14 per share was declared against 0.13.

Net leverage was 1.7x against 2.5x, and the company repaid USD 50 million to bring recourse debt to USD 600 million. It repurchased 280,000 shares for USD 10.2 million. Total liquidity was USD 435.2 million. The estimates table lists a market capitalization of USD 1.17 billion.

Markers for the Release

Reported EPS against 1.09 and revenue against USD 737.83 million are the headline comparisons. Other markers are Progressive Leasing volume, write-offs and the raised guidance ranges.