PRG · PROG Holdings, Inc.

PROG Holdings delivered a strong first quarter 2026, with results exceeding the high end of management's outlook for earnings and non-GAAP EPS. Consolidated revenues increased 11.1% to $742.7 million, primarily driven by the inclusion of Purchasing Power, acquired on January 2, 2026, and continued triple-digit growth at Four Technologies. This growth offset an 8.4% revenue decline in the Progressive Leasing segment. Profitability expanded significantly, with Adjusted EBITDA rising 29.2% to $90.3 million (12.2% margin), driven by higher yields in the leasing portfolio and improved economics at Four. Non-GAAP diluted EPS grew 37.8% to $1.24, benefiting from a lower effective tax rate of 23.9% compared to 26.8% in the prior year.

Segment performance highlighted a divergence in trends. Four Technologies demonstrated robust growth, with GMV up 133.6% and Adjusted EBITDA up 201.0%. Progressive Leasing showed signs of stabilization; while Q1 GMV declined 2.2% year-over-year, management noted a return to year-over-year GMV growth exiting the quarter. Purchasing Power contributed $132.7 million in GMV and $107.1 million in revenue during the partial period. The company actively managed its balance sheet following the acquisition, reducing net recourse debt by $210 million to achieve a net leverage ratio of 2.0x. Management raised full-year 2026 guidance, projecting total revenues between $3.0 billion and $3.1 billion and non-GAAP diluted EPS between $4.40 and $4.80, citing strong momentum and the benefits of a diversified ecosystem.