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

PROG (NYSE:PRG) released its earnings results on Wednesday. The fintech holding company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.24, FiscalAI reports. The company had revenue of $719.72 million for the quarter, compared to the consensus estimate of $713.50 million. PROG had a net margin of 5.88% and a return on equity of 21.94%. 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 Price Performance

PRG stock traded up $1.05 during midday trading on Thursday, reaching $43.83. The company had a trading volume of 115,815 shares, compared to its average volume of 516,692. PROG has a 1-year low of $25.80 and a 1-year high of $47.73. The stock has a 50 day moving average price of $40.78 and a 200-day moving average price of $35.31. The company has a debt-to-equity ratio of 1.21, a current ratio of 4.27 and a quick ratio of 2.41. The company has a market capitalization of $1.76 billion, a price-to-earnings ratio of 11.98 and a beta of 1.78.

PROG Announces Dividend

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

Institutional Trading of PROG

Several institutional investors and hedge funds have recently modified their holdings of the business. Quarry LP increased its position in PROG by 82.8% during the 4th quarter. Quarry LP now owns 1,117 shares of the fintech holding company’s stock worth $33,000 after purchasing an additional 506 shares in the last quarter. Federation des caisses Desjardins du Quebec bought a new stake in PROG during the 4th quarter worth $44,000. WealthCollab LLC increased its holdings in PROG by 61.9% in the 2nd quarter. WealthCollab LLC now owns 2,092 shares of the fintech holding company’s stock worth $61,000 after purchasing an additional 800 shares in the last quarter. Aquatic Capital Management LLC bought a new position in PROG in the third quarter valued at about $204,000. Finally, iSAM Funds UK Ltd bought a new position in PROG in the third quarter valued at about $209,000. 97.92% of the stock is currently owned by institutional investors.

Key Stories Impacting PROG

Here are the key news stories impacting PROG this week:

• Positive Sentiment: KeyCorp raised its price target from $45 to $50 and upgraded its stance to “overweight,” implying approximately 17% upside from the referenced price. The move signals increased confidence in PROG’s earnings outlook. Benzinga report
• Positive Sentiment: PROG beat second-quarter expectations: adjusted earnings were $1.19 per share versus the $0.95 analyst consensus, while revenue reached $719.72 million versus estimates of $713.50 million. Earnings also rose from $1.02 per share a year earlier. PROG Holdings second-quarter results
• Positive Sentiment: Full-year 2026 EPS guidance of $4.75-$5.00 exceeds the $4.66 consensus estimate. The company’s results include Purchasing Power, acquired in January, and management cited solid revenue, adjusted EBITDA and non-GAAP earnings performance.
• Neutral Sentiment: Third-quarter EPS guidance of $1.00-$1.20 brackets the $1.05 consensus, with the midpoint above expectations. However, the $715 million-$750 million revenue range has a midpoint of $732.5 million, below the $746.7 million consensus estimate. PROG Holdings guidance
• Negative Sentiment: Investors remain cautious about write-offs, household financial pressure and broader consumer-credit conditions. These concerns may be outweighing the quarterly beat and analyst target increase, contributing to the decline in PRG shares.

Analyst Ratings Changes

Several equities analysts have recently issued reports on PRG shares. Zacks Research lowered shares of PROG from a “strong-buy” rating to a “hold” rating in a report on Monday, June 29th. Raymond James Financial restated an “outperform” rating and set a $45.00 target price on shares of PROG in a report on Thursday, April 30th. Weiss Ratings upgraded shares of PROG from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, June 24th. Stephens upped their target price on shares of PROG from $40.00 to $47.50 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. Finally, Jefferies Financial Group raised PROG from a “hold” rating to a “buy” rating and lifted their price target for the company from $33.00 to $60.00 in a research note on Wednesday, July 8th. Six investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $47.69.

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.